Etdp Seta Annual Report 2009-2010

Education, Training and
Development Practices
Annual Report 2009/2010
Sector Education and
Training Authority
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The ETDP SETA Landscape
The Education, Training and Development Practices Sector
Education and Training Authority (ETDP SETA) was established
in March 2000 in terms of the Skills Development Act (No. 97 of
1998) (as amended).
The SETA is mandated to promote and facilitate the delivery of

education, training and development in order to enhance the skills
profile of the Education, Training and Development (ETD) sector
and contribute to the creation of employment opportunities
especially for those previously disadvantaged.
The period of the ETDP SETA’s mandate was extended for five
years from April 2005 and for a further period until March 2011
by which time its mandate would have already been reviewed.
Contents

Vision, Mission and Values 2
Chairperson’s Remarks 3
Chief Executive Officer’s Overview 4
ETDP SETA Performance against NSDS Targets and Achievements 6
Learner Equity Targets Report 10
Skills Development Programmes Implemented 11
Provincial Performance 14
Sector Skills Planning and Research 17
Quality Assurance and Provider Support 21
Support Services 24
Governance 29
Audit Committee Report 32
Report of the Auditor-General to Parliament 34
Annual Financial Statements for the Period Ended 31 March 2010 36
Report of the Accounting Authority 37
Appendix 1 72
Abbreviations and Acronyms 81
ETDP●SETA Annual Report 2009/2010 1

Vision, Mission and Values
Vision Objectives
The vision of the ETDP SETA is to promote and facilitate the The objectives of the ETDP SETA are to:
development and improvement of the skills profile of the sector’s
workforce in order to benefit employers, workers and employees • Promote and facilitate:
in the sector. - the identification of skills shortages and training needs in
the sector;
Mission - the development of qualifications and learning pathways
for education, training and development practitioners;
To support its vision, the ETDP SETA has as its mission the - an increase in the levels of investment in education,
promotion, facilitation and development of an education, training training and development and improve the return on
and development in which: investment;
- the development of skills of workers at all levels,
• the skills levels of employees and workers are raised; through a better quality of life for workers, employment
• there is a healthy balance between supply and demand in prospects for those previously disadvantaged and labour
the labour market; mobility;
• there are diverse, flexible routes for initial and in-service - higher productivity in the workplace and healthy
education and training; competition among employers;
• a variety of career paths are available; - self-employment; and
• the quality of education and training provided is improved; - redress of past imbalances caused by separate and
• the levy grant scheme is efficiently administered; unequal education and training systems.
• there is regular liaison with providers, other SETAs, the
Department, the National Skills Authority (NSA) and the • Encourage employers in the sector to use the workplace as
South African Qualifications Authority (SAQA) and its an active learning environment to:
structures;
• internal and external communication is effective in order to - provide employees with the opportunities to acquire
advance national human resource and skills development; new skills;
• dialogue and interaction between public and private entities - provide opportunities for new entrants to enter into the
in the sector with regard to skills transfer and training; sector to gain work experience;
• delivery is encouraged; and - encourage workers in the sector to participate in
• employers, workers and employees in the sector benefit learnerships and other relevant learning programmes;
from quality training, higher productivity and harmonious and
mutual dependencies. - promote partnerships between the public and private
sectors of the economy.
Core Values
Service Delivery Credo
• Transparency;
• Fairness; “To be at the cutting edge of Skills Development within the ETD
• Courteousness and caring; sector, contributing to the social and economic development of
• Honouring deadlines; the people of South Africa”.
• Promotion of quality among all stakeholders;
• Co-operative governance;
• Approaching work in a developmental manner; and
• Continuous improvement.
2 ETDP●SETA Annual Report 2009/2010

Chairperson’s
Remarks
“The ETDP SETA welcomes

Once more, I am delighted to present our annual the additional one-year extension
report which demonstrates our commitment
and passion to the skills revolution in our country. granted by the Minister of Higher
Despite many challenges, the ETDP SETA continues
to do its best to address the challenges surrounding
Education and Training.”
skills and employment.
The ETDP SETA welcomes the additional one-year extension

The following are areas in which the ETDP SETA
granted by the Minister of Higher Education and Training. (HET)
performed exceptionally well:
This provides another opportunity to improve performance and
to prepare adequately for the challenges ahead.
• The entry of learners into learning programmes;
• The WSP/ATR submissions of large and medium firms;
I would like to extend my sincere gratitude and appreciation to
• Support for BEE firms;
my fellow Board Members for their commitment. Every Board
• Support for Non-governmental Organisations (NGOs); and
meeting was exciting because of the level of engagement and
• Completion of specific learning programmes.
debate on skills development and our fiduciary role.
Although the ETDP SETA performed well in reaching its targets,
Partnerships form the cornerstone of the ETDP SETAs successes
there are areas that are challenging for the organisation. These are:
and I would like to acknowledge the roles played by all our
constituencies in various committees and structures. You have
• The completion of programmes by employed learners.
indeed made the SETA proud. Together we will always do better
The ETDP SETA will monitor these learners’ progress
and more.
more closely to ensure that they complete their learning
programmes;
My appreciation also goes to the ETDP SETA management and
• Completion of Artisan trades. Plans will be implemented to
staff.
ensure successful completion by these learners; and
• Monitoring and evaluation of projects needs to be given a
Thank you!
specific focus which will lead to higher quality outcomes,
ensuring that high value is achieved.
Given our commitment to continuous improvement, the above

challenges are receiving the attention they deserve.
Mr George Mudumela
Chairperson – ETDP SETA Board

Chief Executive
Officer’s Overview
“The targets for registration into

learning programmes and for successful Performance against the
completion of training were exceeded by NSDS II Objectives
37% and 60% respectively.” The detailed tables on pages 6 to 9 of this
report, provide information on the extent to
which the ETDP SETA performed against the
NSDS II objectives in terms of the SLA entered
The skills challenge in our country remains, despite intense efforts
into between the ETDP SETA and the Department of Higher
to improve these levels through training and development. The
Education and Training. The SLA is based on the annual targets
ETDP SETA, like the other SETAs, is required to train a number
set out in the NSDS II. During the 2009/10 financial year, the
of people, both employed and unemployed, in order to raise their
SETA registered a total of 5,989 employed and unemployed
skills profiles. This requirement was entrenched through Service
people into various learning programmes versus set target of
Level Agreements (SLAs) entered into with the Department of
4,330. This marked an achievement of 137%. A total of 3,878
Labour until November 2009, when the management of SETAs
learners (employed and unemployed) successfully completed
was transferred to the Department of Higher Education and
their programmes against a target of 2,410, which reflects an
Training.
achievement of 160%.
The SLAs stipulate the objectives and targets to be met on an
The above achievement was brought about by raising the bar
annual basis as outlined in the NSDS II. A large number of people
where it was financially possible and by increasing the target,
have been trained and attained the necessary qualifications;
more people were trained. Through monitoring, evaluation and
however employment has remained a challenge, especially among
motivation of learners many completed their programmes.
the youth.
It is worth noting that even though the ETDP SETA performed
The global economic crisis claimed a number of victims, with many
well in reaching its targets, many learners still take longer than
workers being laid off by their employers. The impact was severe,
the required duration to complete their studies and some drop
not only to the victims, but to their families and the country at
out in the middle of their studies. This is more of a challenge for
large as production decreased.
those who are employed and it has become evident that they are
unable to cope. The ETDP SETA constantly pleads with employers
The ETDP SETA continued to deliver on its mandate and doubled
to grant their workers time off to study in order to improve both
its effort in 2009/10 in addressing the challenges. The following
their qualifications and skills as required in the workplace.
are some of the highlights, the details of which are outlined in this
report.

Chief Executive Officer’s Overview (continued)
Additional Achievements FET Colleges, the Bid Evaluation Committee took a decision not
to award the tender to one prospective bidder only, and instead
In addition to its skills development mandate, the ETDP SETA spread the tender across the nine provinces among public and
continues to play an active role in education, training and private providers, awarding one tender per bidder.
development in general. The following highlights bear testimony to
the depth of ETDP SETA’s involvement in the sector: One of the private providers contested the outcomes of the
bid evaluation on the basis of the price of the bid, which placed
this bidder on a higher score. The court ruled in favour of the
The Training Lay-off Scheme complainant and set aside all tenders that were awarded to other
The ETDP SETA committed R30 million towards the retraining providers. At the time of the court decision training had already
of workers that were laid off during the recessionary period. been undertaken by the other eight providers. This resulted in the
However, no requests were made to the ETDP SETA by ETDP SETA incurring a wasteful and fruitless expenditure of
employers to access the training programmes related to the R5, 117, 720 as reported by the Audited General.
scheme. This could be attributable to the fact that the Education
and Training Sector was not affected by the lay-offs to the same The ETDP SETA has since tightened its tender processes to allow
extent as the Wholesale and Retail, Manufacturing and Mining a fair competition between private and public providers. It has
sectors. The invitation remains open to affected employers in our been decided that whilst the price is considered as a factor, it
sector to submit their requests in order to tackle the looming skills should not be the only determining factor for awarding tenders.
shortages and gaps in semi- and unskilled professions.
Looking Forward
Enhancing the Professional Development
The ETDP SETA has embarked on a more focused and strategic
of our School Educators approach to improving the skills base of our people. We have
In partnership with the Education Labour Relations Council developed a five year strategic plan (2010-2015) which is
(ELRC), the National Department of Education and the Teacher informed by national government priorities. The strategy marks
Unions and Associations, the ETDP SETA played a leading and a shift from training to completion of targets and extends to the
progressive role in hosting a successful Teacher Development setting of targets for employment creation.
Summit in July 2009. The Summit sought to address the teaching
and learning challenges impeding the provision of quality education Appreciation
in the country.
I take this opportunity to express my sincere gratitude and
The resolutions of the Teacher Development Summit are appreciation for the work, commitment and dedication of the
currently being addressed by expert teams that include ETDP Board members, the Board Executive Committee, the Chambers,
SETA representatives. The ETDP SETA Board demonstrated the Finance Committee, the Human Resource Committee, the
commitment in working with the Department of Education in Audit Committee, the Education, Training and Development
developing a strategy that will address the skilling and re-skilling of Quality Assurance (ETDQA) Permanent Committee, other Joint
so-called “unqualified educators”. This is very critical in improving Standing Committees, the Labour Forum and the Employer Forum
the quality of learning and teaching, in particular and the quality and all the governance members who were deployed to perform
of education at large. Re-training and development of “unqualified the SETA tasks. They performed their duties diligently and with
teachers” aims to put teachers at the centre stage of education passion, despite the fact that they are not reimbursed for these
and development and to enhance their professional status and services.
integrity.
My special thanks go to the ETDP SETA management and staff for
The FET Round Table their hard work and commitment to achieving our objectives.
The ETDP SETA strongly believes that the FET sector is critical to
building the skills base of the people of South Africa, both old and I am also greatly indebted to all the people who participated
young. This can be achieved by ensuring that we have responsive in our programmes, the learners, host employers, training
colleges that can deliver effective and meaningful programmes for providers, our constituencies and all other ETDP SETA clients
vocational and occupational qualifications. and stakeholders who walked with us in the skills development
journey for our sector.
The ETDP SETA hosted the FET round table in April 2010 in
partnership with the Department of Higher Education and I look forward to another year of success and rigour in confronting
Training and the South African College Principal Organisation the unemployment and underdevelopment challenges that
(SACPO). This will culminate in a Summit that will be held in continue to face us.
September 2010 and will give strategic direction and purpose to
the FET sector.
Set Backs
The ETDP SETA placed a tender advertisement for the training Ms Nombulelo S Nxesi
of the ECD Practitioners. In a quest for inclusion of the Public Chief Executive Officer – ETDP SETA

ETDP SETA Performance against
NSDS Targets and Achievements
Table 1: Achievements on NSDS II Objective 1 and Targets for 2009/10
NSDS II Objective 1: Prioritising and Communicating Critical Skills for Sustainable Growth, Development and Equity
NSDS Success Indicator SETA Target 2009/10 Achievement Comments
1.1 Skills development Annual final SSP submitted Annual final SSP submitted on In complying with the
supports national on 31 August 2009, as per 31 August 2009 and approved. requirement of this target, the
and sectoral growth, guidelines issued by the DoL, SETA extensively engaged its
development and and approved. constituencies and submitted as
equity priorities. per requirements.
1.2 Information on scarce Annual training of 800 Annual training of 1,102 (138%) Through an extensive advocacy
and critical skills is persons who carry out skills persons took place. programme that resulted
widely available to development facilitation in the in an increased number of
learners. use of the Scarce and Critical participants in our information
Skills Guide to communicate sharing sessions, the annual
information to learners widely. target was exceeded.

NSDS II Objective 2: Promoting and Accelerating Quality Training for All in the Workplace
2.1(a) By March 2010, skills By March 2010, 54 large By March 2010, 79 (146%) The focused advocacy
development supports firms’ employment equity large firms’ employment equity programme on the mobilisation
at least 80% of large targets are supported by skills targets were supported. of WSPs/ATRs submissions
firms’ employment development through WSP/ by the ETDP SETA member
equity targets. ATR grants. organisations resulted in more
than the expected number of
WSPs/ATRs being received and
processed.
2.1(b) By March 2010, By March 2010, 85 medium By March 2010, 184 (216%) Through the ETDP SETA’s
skills development firms’ employment equity medium firms’ employment extensive WSP/ATR advocacy
supports at least 60% targets are supported by skills equity targets were supported. programme, more medium
of medium firms’ development through WSP/ companies submitted their
employment equity ATR grants. WSPs/ATRs.
targets.

ETDP SETA Performance Against NSDS Targets and Achievements (continued)
NSDS II Objective 2: Promoting and Accelerating Quality Training for All in the Workplace
2.2 By March 2010, skills By March 2010, skills By March 2010, 689 (109%) The achievement against
development in at development in 634 of small levy-paying firms were this target is once again
least 40% of small small levy-paying firms to be supported. attributed to the the ETDP
levy-paying firms to be supported. SETA’s extensive WSP/ATR
supported. advocacy programme which
was conducted during the year
under review.
2.5 Annually increasing 5 BEE firms supported by skills A total of 10 (200%) small BEE The SETA has supported 5
the number of small development. firms and BEE co-operatives more small BEE firms than
BEE firms and co- were supported. the set target due to the
operatives supported beneficiaries’ varying training
by skills development. needs and costs which were
within the SETA budget.
2.7 By March 2010, at By March 2010, 50% (150) of By March 2010, 235 (152%) This achievement is largely
least 700,000 workers workers who have entered workers completed ABET levels attributed to the ETDP
would have achieved at programmes need to have 3 and 4. SETA’s improved and focused
least ABET level 4. successfully completed ABET monitoring and evaluation
levels 3 and 4. strategy on its programmes. The
strategy had a special focus on
Target: the ABET programmes.
ABET Level 3: 60 Level 3: 76 (127%)
ABET Level 4: 90 Level 4: 159 (177%)
2.8 By March 2010, at By March 2010, 2,423 workers By March 2010, 3,273 (135%) A dedicated focus on the
least 125,000 workers would have been assisted to workers had been assisted implementation of the ETDP
will be assisted to enter learning programmes. to enter and 1,583 (139%) SETA’s programme monitoring
enter, and at least completed programmes and evaluation strategy
50% are expected to From previous learning including learnerships and resulted in the ETDP SETA
successfully complete programmes, 1,140 (50%) apprenticeships successfully. over-achievement against the
programmes, including would have successfully entered targets.
learnerships and completed programmes,
apprenticeships, including learnerships and However, according to the
leading to basic entry, apprenticeships. findings of the ETDP SETA
intermediate and high impact study, its under-
level scarce skills. Target: achievement on learnership,
bursary and apprentaship
Entry: Entry: completions are largely due
Learnerships: 243 Learnerships: 362 (149%) to the employed’s difficulty
Skills Programmes: 2,180 Bursaries: 20 in balancing their work and
Skills Programmes: 2,891 (133%) academic responsibilities as they
Completions: are often longer and require
Learnerships: 382 Completions: more commitment than skills
Bursaries:160 Learnerships: 363 (95%) programmes.
Skills Programmes: 560 Bursaries:116 (73%)
Apprenticeships: 38 Skills Programmes: 1,104 (197%) Lessons drawn from the impact
Apprenticeships: 0 study have resulted in special
interventions being put in place
to address these challenges
as the ETDP SETA plans for
2010/11.

NSDS II Objective 3: Promoting Employability and Sustainable Livelihoods through Skills Development
3.2 By March 2010, at least 50 NLPEs, NGOs, CBOs and 83 (166%) This over achievement is
2,000 NLPEs, NGOs, community-based co-operatives NLPEs, NGOs, CBOs and a result of the successful
CBOs and community- to be supported by skills community-based co-operatives implementation of the ETDP
based co-operatives to development. were supported. SETA’s SMME support project
be supported by skills using a voucher system.
development.

NSDS II Objective 4: Assisting Designated Groups, Including New Entrants, to Participate in Accredited Work, Integrated Learning
and Work-Based Programmes to Acquire Critical Skills to Enter the Labour Market and Self-Employment.
4.1 By March 2010, at least Entry: By March 2010, 1,795 Entry: By March 2010, 2,416 Due to the high rate of
125,000 unemployed unemployed people assisted to (135%) unemployed people had unemployment in the
people assisted to enter learning programmes. been assisted to enter learning country there was a high
enter and at least programmes. demand for scarce and critical
50% successfully skills programmes for the
complete programmes, Completions: Completions: unnemployed.
including learnerships From the previous learning 2,060 (184%) completed
and apprenticeships, programmes, 1,120 programmes, including This positive achievement is
leading to basic entry, would have successfully learnerships and apprenticeships a result of the ETDP SETA’s
intermediate and high- complete programmes successfully, leading to basic improved M&E strategy.
level scarce skills. including learnerships and entry, intermediate and high- This supported the strategic
apprenticeships, leading to basic level scarce skills. business decision that was taken
entry, intermediate and high- to support the unemployed
level scarce skills. making additional funding
available.
Entry: Entry:
Learnerships: 1,083 Learnerships: 1,308 (121%)
Apprenticeships: 0 Apprenticeships: 8
Bursaries: 0 Bursaries: 25
Skills Programmes: 632 Skills Programmes: 946 (150%)
Internships: 80 Internships: 129 (161%)
Completions: Completions:
Learnerships: 580; Learnerships: 1,218 (210%)
Bursaries: 80; Bursaries: 129 (161%)
Skills Programmes: 240 Skills Programmes: 499 (208%)
Internships: 160 Internships: 214 (134%)
Apprenticeship: 60 Apprenticeships: 0
4.2 100% of learners Initially the SETA did not set a A total of 188 learners in critical The ETDP SETA has already
in critical skills target for this indicator. skills programmes from FET and over-achieved against its five
programmes covered HET institutions were assisted year target of 500 by 2,601 in
by sector agreements NB: Its five year target has to gain work experience as per the previous years. However,
from FET and HET already been over achieved in the request from constituencies. it took a strategic business
institutions assisted to the previous years by 2,601 decision to continue supporting
gain work experience against the set five year target student teachers due to
locally or abroad, of of 500. constituency driven needs.
whom at least 70%
find placement in
employment or self-
employed.
4.3 By March 2010, at least By March 2010, at least 112 By March 2010, 112 (100%) The ETDP SETA has achieved
10,000 young people new ventures are in operation young people registered new this target.
trained and mentored 12 months after completion of ventures.
to form sustainable programme.
new ventures and
at least 70% of
new ventures in
operation 12 months
after completion of
programme.

ETDP SETA Performance Against NSDS Targets and Achievements (continued)

NSDS II Objective 5: Improving the Quality and Relevance of Provision
NSDS Success Indicator SETA Target 2009/2010 Achievement Reasons for Variations
5.1 By March 2010 each No target for 2009/10. The set This ETDP SETA reported its The ETDP SETA has continued
SETA recognises and target of 8 institutes for the achievement in 2008/9. 8 ISOEs using its ISOE strategy to
supports at least five sector has been achieved and were recognised and supported support the identified 8 ISOEs
Institutes of Sectoral the ETDP SETA will continue against a set target of 2 ISOEs. during 2009/10.
or Occupational supporting all these ISOEs
Excellence (ISOE) during 2009/10.
within public and
private institutions and
through Public Private
Partnerships where
appropriate, spread
as widely as possible
geographically for the
development of people
to attain identified
critical occupational
skills, whose excellence
is measured in the
number of learners
successfully placed
in the sector and
employer satisfaction
ratings of their training.
5.2 By March 2010, No target for 2009/10. Target The achievement was reported The achievement was reported
each province has at of 22 accredited provider in the 2007/08 and 2008/09 in the 2007/08 and 2008/09
least two provider institutions has been achieved. financial years. financial years.
institutions accredited
to manage the delivery
of the new venture
creation qualification.
70% of new ventures
still operating after 12
months will be used
as a measure of the
institutions’ success.
5.3 By March 2010 there The target for the ETDP The target for the ETDP Note: The SAQA performance
are measurable SETA is to improve the SETA is to improve the audit is conducted every three
improvements in quality of service delivery and quality of service delivery and years.
the quality of the implementation of NQF as implementation of NQF as
services delivered by required by SAQA. required by SAQA. The ETDP SETA achieved
skills development against this target as it received
institutions and those a rating of 1.96 as per the
institutions responsible SAQA performance audit
for the implementation conducted in 2007/8.
of the NQF in support
of the NSDS.

Learner Equity Targets Report
In terms of the National Skills Development Strategy, SETAs are Learners Completed Learning
required to meet the equity targets in the provision of services:
85% Black (including Indian and Coloured) learners, 54% Women,
Programmes
and 4% Persons with disabilities, with a special focus on the youth.
Target:
The following statistics indicate learners who entered and Learner profile Target – 2.7, 2.8 and 4.1 (2,410)
completed various learning programmes during the year under Black 85% (2,048)
review. The learning programmes completed are based on the
Female 54% (1,301)
previous years’ enrolments.
People living with disability 4% (96)
Youth 50% (1,205)
Learners Entered into Learning
Programmes
Achievements:
Learner profile Achieved – 2.7, 2.8 and 4.1
Target: (3,878)
Learner profile Target – 2.8, 4.1 and 4.3 (4,330) Black 98% (3,802)
Black 85% (3,680) Female 73% (2,823)
Female 54% (2,338) People living with disability 1.83% (71)
People living with disability 4% (173) Youth 50% (1,950)
Youth 50% (2,165)
Achievement:
Learner profile Achieved – 2.8, 4.1 and 4.3 (5,989)
Black 96% (5,735)
Female 69% (4,135)
People living with disability 4% (240)
Youth 51% (3,064)
The SETA has achieved more than it had planned because of

affordable provider fees.

Skills Development
Programmes Implemented
According to the Skills Development Act (No. 97 of 1998) During 2009/10 the ETDP SETA implemented the Further
(as amended), learning programmes include learnerships, Education and Training Certificate (FETC) in ECD Practice NQF
apprenticeships, skills programmes and any other prescribed Level 4, the FETC in Development Practice (DEV PRAC) NQF
learning programmes which include a structured work experience Level 5 and the Occupationally Directed Education Training and
component. Development (ODETD) Certificate NQF Level 5.
To achieve its strategic objectives and respond to the skills needs Early Childhood Development (ECD), the first and essential
of its constituencies, the ETDP SETA implemented learnerships step toward achieving primary school completion, is a priority
and skills programmes in all provinces. In addition, it implemented area in South Africa and is supported by legislation, national
internships in some provinces. policies and strategies. Consequently, the ETDP SETA places great
emphasis on ECD programmes to help improve the capacity of
Learning Programmes children to develop and learn for better long term prospects. In
order to meet ECD needs, the ETDP SETA implemented the
FETC in ECD Practice NQF Level 4 for practitioners in all nine
Learnerships provinces. The ECD NQF Level 4, a one-year programme with
120 credits, is aimed not only at increasing employment prospects
A Learnership is a mode of delivering a learning programme that for the unemployed but also at producing suitably qualified ECD
combines work-based experience with structured learning. For practitioners with a recognised qualification.
the learner it is a means to acquiring a qualification. A learner who
completes a learnership will be able to demonstrate the practical Many of the skills development objectives, nationally as well as
application of competence (skills, knowledge, values and attitudes) within companies and organisations, are met through the efforts
in an employment context. Learnership qualification components of ETD practitioners. The ODETD learnership consequently
consist of: addresses the key competencies of such practitioners. This meets
the needs of those who wish either to progress beyond the
• Fundamentals: Basic education requirements to take part FETC ODETD or to enter the ETD field for the first time. The
in a learnership – usually life skills, numeracy and literacy learnership provides the means to recognise ODETD practices
competence and communication skills; across five key ETD roles in the capacity of a generalist, with
• Core: The mainframe of the learning programme (what the possibility of particular application in at least one role. It
the qualification is to be based on) – the core skills and provides skills in facilitation, mentoring and assessment as well
knowledge required; and as programme development and design. It mainly targets and
• Electives: The specialised areas, or the application of the is implemented for the employed practitioners in provinces to
core skills and knowledge in defined work situations. address identified needs.

Skills Development Programmes Implemented (continued)
The DEV PRAC learnership is a critical access learnership in the assessments within their fields of expertise in a fair, valid, reliable
ETD field. Practitioners with this qualification are able to provide and practicable manner that is free of all bias and discrimination.
professional support directly to individuals and communities, thus
empowering such individuals and communities to achieve specific Moderation of outcome-based assessments
outcomes. The qualification also enables practitioners to provide
short learning programmes to community groups and to assist in This skills programme enables beneficiaries to moderate
assessing the learning or development of community groups. The assessments in terms of the relevant outcome statements and
learnership is directed at both adults and youth (employed and quality assurance requirements. The qualified moderator is able
unemployed) with sufficient experience in general community to use the prescribed quality assurance procedures in a fair,
development work and the development practice field, valid, reliable and practicable manner that is free of all bias and
especially those employed as auxiliary social workers, community discrimination.
development workers and NGO and CBO field activists. It was
implemented in all provinces. Skills development facilitation
Skills programmes The Skills Development Facilitator (SDF) programme is aimed at

people who intend to conduct analyses to determine outcomes of
Skills programmes are occupationally based, constitute a credit learning for the purposes of defining skills needs at organisational
towards a qualification registered on the NQF and are offered level and/or to identify assessment standard titles at industry or
by accredited education providers. These programmes are aimed sub-sector level. The programme also addresses the initiation
at enhancing productivity of the employed in the workplace. and implementation of training and development plans for
Skills programmes implemented by the ETDP SETA include both organisations. People who will benefit from this skills programme
primary focus and non-primary focus programmes, many of which include SDFs, training managers and Human Resources (HR)
are based on the national scarce and critical skills list and the development practitioners.
needs of constituent employers.
Facilitation of learning
Primary focus skills programmes
Facilitation of learning provides recognition for those who facilitate
Primary focus skills programmes are quality assured by the ETDP or intend to facilitate learning, using a variety of methodologies.
SETA ETDQA and are key programmes within the ETD sector. Formal recognition enhances employability, but also provides a
The skills programmes that have been identified as scarce and means to identify competent learning facilitators. The programme
critical by the ETDP SETA have been packaged and offered includes training on planning and preparing for facilitation,
to the ETDP SETA constituencies in all provinces. These skills facilitating learning, and evaluating learning and facilitation.
programmes are discussed below.
Material and curriculum development training
Guide learners regarding learning, assessment and recognition
opportunities This skills programme enables learners to design outcome-based
learning programmes and develop materials for a group of
This skills programme provides recognition to individuals who learners in a selected learning area, with reference to relevant unit
perform or intend to perform one-on-one training on the job. standards and using a variety of available sources.
Formal recognition enhances employability and also provides
a means of identifying competent trainers or coaches. Once Non-primary focus skills programmes
completed, learners are able to prepare for one-to-one training
on the job, conduct training sessions, monitor and report on To assist constituencies in obtaining the identified scarce and
learner progress and review training. critical skills that are not the primary focus of the ETDP SETA,
(skills programmes based on unit standards that are not quality-
Conduct outcome-based assessment assured by the ETDQA), the ETDP SETA offers a range of
non-primary focus skills programmes. This endeavour not only
This skills programme is geared towards those who assess guarantees a continuous supply of skilled workers but also ensures
people on their achievement of learning outcomes in terms of that unemployed learners receive the necessary training to
specified criteria, using pre-designed assessment instruments. The increase their employability in the ETD sector.
outcomes and criteria may be defined in a range of documents,
including but not limited to unit standards, exit level outcomes, Non-primary focus skills programmes were offered in all
assessment standards, curriculum statements and qualifications. provinces. The following were implemented:
Those who complete this skills programme are able to conduct

• Project Management;
• Information, Communication and Technology;
• Leadership and Management;
• Financial Management;
• Supply Chain Management;
• End-User Computing;
• Sign Language;
• International Computers Drivers Licence;
• Supervisory Management; and
• Pastel Trainer.
Internships
The ETDP SETA internship programme is a graduate work

experience programme targeting young unemployed graduates
who have completed their studies, preferably in an area of
scarce and critical skills. The internship provides learners with the
opportunity to practice work skills that they have studied and
will practice in the future. An internship can also prove beneficial
for an employer, as he or she is granted the opportunity to
become acquainted with the intern and establish whether the
intern is employable in the business, thus increasing prospects
of employability. Internships aim to resolve the general shortage
of qualified and skilled people in the workforce by encouraging
graduates to equip themselves with the necessary practical
experience.

Provincial Performance
In implementing programmes in the provinces close working relationships are maintained with stakeholders in each province. These
include other SETAs, the Premier’s Office, the FET colleges and universities. The following two tables highlight provincial performance.
Table 6: Learners Entering Programmes (employed and unemployed)

Equity
Province Programme Achieved Black Female Disabled
EC Learnerships 181 180 160 -
Skills Programmes 324 309 224 2
Internship 50 50 28 1
FS Learnerships 198 194 189 -
Skills Programmes 511 430 325 -
GP Learnerships 153 152 131 1
Internship 29 28 25 -
Bursaries 37 20 27 -
KZN Learnerships 333 332 274 -
LP Learnerships 224 224 194 18
MP Learnerships 159 159 131 -

Provincial Performance (continued)
Equity
NC Learnerships 137 137 127 -
Bursaries 4 3 2 4
NW Learnerships 206 195 143 -
WC Learnerships 165 145 137 -
WPE 188 195 154 -
Bursaries 3 3 2 -
Table 7: Learners Completing Programmes (employed and unemployed)

Equity
EC Learnerships 74 73 58 -
FS Learnerships 161 149 148 -
Bursaries 57 54 30 7
GP Learnerships 100 96 65 -
KZN Learnerships 310 306 265 -
LP Learnerships 201 201 161
MP Learnerships 229 225 149 -
Bursaries 11 11 6 -
NC Learnerships 52 52 50 -
Bursaries 9 9 9
NW Learnerships 57 57 44 1
ABET Level 3 54 54 46 -
ABET Level 4 75 75 58

Provincial Performance (continued)
Equity
WC Learnerships 188 183 175 -
Provincial Highlights
Increasing access to further and higher education
In response to the national call to maximise the participation of learners in Further and Higher education, the ETDP SETA successfully
hosted provincial Iimbizo. The objective of the Iimbizo was to provide learners in secondary schools with information on the national
scarce and critical skills to enable informed career choices.
The ETDP SETA embarked on this initiative after realising that many schools did not adequately provide career guidance on the supply
and demand for skills in the labour market. Information on programmes and contact details of all SETAs, universities and FET institutions
was provided in these sessions. Each learner was given a handbook on learner career guidance which was developed by the ETDP SETA
for this purpose.
The Iimbizo were attended by various constituencies, which included premiers offices, DoEs, DoLs, municipalities, tribal authorities,
CBOs and NGOs. Bursaries were awarded to the schools that participated in the Iimbizo to afford financially disadvantaged learners the
opportunity to study at Further and Higher education institutions (HEI). The Iimbizo were hosted in the following provinces and targeted
rural and under-developed communities:
• Gauteng – Tembisa;
• Northern Cape – De Aar;
• Free State – Qwa Qwa;
• North West – Mokgalwaneng;
• Mpumalanga – Nkangala;
• Limpopo – Mopani and Waterberg;
• KwaZulu-Natal (KZN) – Kwa-Dlangezwa and Pietermaritzburg; and
• Eastern Cape – Mhlontlo municipality.
In the period under review, the Iimbizo did not take place in the Western Cape, where instead, the ETDP SETA participated in the
Mitchell’s Plain Education Summit. The purpose of the summit was to address the unemployment challenges in the region.
In addition to Iimbizo, career exhibitions were held in Limpopo, (Sekhukhune district). Attendance by learners from schools in the district
was excellent and information was shared in collaboration with partners such as the Limpopo Business Support Agency (LIBSA),
Love Life, Sekhukhune FET College, the University of South Africa and the University of Limpopo and the Provincial Department of
Labour.
Celebrating achievements
Graduation ceremonies were held to celebrate completion of a number of learning programmes. These occasions gave recognition to
learners who persevered and completed the programmes.
It is always heartening to experience the joy of the learners as they receive their competency certificates at prestigious graduation
ceremonies, graced by high profile individuals in their provinces. Graduation ceremonies were held in all provinces and took place after
the learners had successfully completed the learning programmes.

Sector Skills Planning and Research
Sector Skills Planning a model which provides a basis for data collection, analysis and
appropriate decision making on skills needs in the sector. A variety
In terms of the Skills Development Act (SDA), as amended, of different models, methods and tools exist through which
Section 10(1) (a), one of the core functions and responsibilities of sector skills planning is undertaken; these can be broadly grouped
the ETDP SETA is the compilation of a five year Sector Skills Plan into skills forecasting, labour market signalling and quantitative
(SSP) and updating it on an annual basis informed by new trends and cost benefit analysis models. The model adopted by the
and developments in the economic sector. The purpose of sector ETDP SETA integrates components of forecasting, signalling and
skills planning is to estimate and project the scale and character qualitative approaches. Since data from workplace skills plans will
of current and future labour market and skills shortages in the also be used as baseline data in mapping changes in occupational
sector, understand the causes of these shortages, and evaluate the structures and profiles, the model also incorporates elements of
appropriateness of different programme and policy responses. the labour market survey approach.
In updating the 2010/11 SSP, the ETDP SETA conducted desktop The model is based on key components as follows:
research to understand changes in the sector and also embarked
on an intensive stakeholder consultation process. The latter was • Analysis and description of key value chains for each of the
conducted at a national and provincial level. In acknowledgement sub-sectors or constituencies in the sector;
of the diverse and vast nature of the ETDP sector, the consultation • Identification of key input/output demand drivers and their
was constituency based and culminated in the development of impact on the value chains described above;
mini SSPs. The mini SSPs were consolidated into an annual SSP • Identification and weighting of external drivers to changes in
update which was submitted to the DHET by 31 August 2009. the workforce profile;
• Mapping the workforce profile for each of the value chain
process flows. These will be disaggregated into the core
Current “Best Practice” in Skills occupations i.e. those occupations which are essential to the
Planning process flow and support occupations;
• Identification and weighting of internal drivers to changes in
There is increasing international consensus that a mixture of the workforce profile;
different models and techniques is usually most effective in • Analysis of data and weighting will be used to forecast
achieving the objectives of sector skills planning. The specific labour and skills needs in each industry sub-sector;
mixture may differ depending on the availability of data, the • Validation of the forecasts using qualitative techniques
resources available for skills planning and the timeframes for (including surveys, focus groups and/or interviews); and
reaching results. For example, where good data is available and
fairly reliable forecasts can be made using a forecasting model,
qualitative techniques may simply validate the forecasts.
In the year under review, the ETDP SETA developed and adopted

Sector Skills Planning and Research (continued)
• Construction of a dashboard of available labour market Workplace Skills Planning (WSP)

signals for each constituency or sub-sector. This will be used
to validate the forecasts and to monitor trends which may The SDA prescribes that each SETA must disburse the skills
have implications for the validity of the forecasts. development levies in its respective sectors if employers have
submitted their Workplace Skills Plans (WSPs) and Annual Training
The model is based on three principles: Reports (ATRs) in conformance with the prescribed format and
timelines. Both reports must be submitted by 30 June annually. The
• The forecasts must be indicative, not prescriptive; ETDP SETA has developed a convenient and user-friendly online
• A mix of qualitative and quantitative information will be facility for WSP and ATR submission.
used; and
• The outputs of the model must be appropriate and useful. Approximately 2,200 organisations are paying their levies in
compliance with the Skills Development Levies Act (No. 9 of
Capacity Development in Sector Skills 1999) (SDLA). Of the 2,200, 781 submitted their WSPs/ATRs. This
Planning leaves the ETDP SETA with over 1,200 that will not receive 50%
of their levies due to non-compliance with the Act.
In acknowledgement of the skills gaps in research and skills
To address this challenge, the ETDP SETA embarked on
planning the ETDP SETA identified the need for an intensive
mobilisation workshops throughout the country to encourage
capacity building initiative in the Labour Market Analysis (LMA)
both the non-compliant and compliant employers to participate in
programme for its constituencies and staff members.
skills development through the completion of WSPs and ATRs.
The aim of the LMA was to address the following:
Figure 1 reflects the submission trend by constituency for the
levy chamber, with the School Governing Bodies having the
• Understanding and applying basic theoretical constructs of
majority of submissions (305), followed by Independent Schools
labour economics;
(149), Private Providers of ETD (141), NGOs/CBOs (33), public
• Data collection processes and analyses, and presentation of
higher education institutions (25), public FET Colleges (21),
labour market information;
research organisations (12), trade unions (11), ECDs (9), and
• Critical evaluation of labour market policies and
political parties (3). The following entities fell within the ‘others’
programmes;
category: ETDP SETA, SAQA, Umalusi, and the Manufacturing,
• Promotion of the better use of labour market information;
Engineering and Related Services SETA (MERSETA).
• Use of appropriate tools and techniques to analyse skills
supply and demand; and
• Sharing best practice in labour market information analysis.
The intervention was put in place to ensure that SSP development

is strengthened within the sector.
Figure 1: Submissions of WSPs by constituency
WSP/ATR Submission by Constituency
Trade Unions 11
School Governing Bodies 305
Research Organisations 12
PHEIS 25
Public FET College 21
Private Providers 141
Political Parties as Employers 3
Others 4
NGOs/CBO in ETD 33
Independent Schools 149
ECDs 9
0 50 100 150 200 250 300 350

Figure 2 shows the submission trend by province for the levy chamber, with Gauteng Province having the majority of submissions
(345), followed by the Western Cape (161), KZN (97), Eastern Cape (42), Limpopo (25), North West (19), Free State (18), and both
Mpumalanga and the Northern Cape with three (3) submissions each.
Figure 2: Submissions of WSPs by levy-paying organisations per province
WSP/ATR Submission by Province
350 345
300
250
200
161
150
100 97
50 42
18 25 19
3 3
0
e
State
nga
est
pe
ape
teng
al
opo
Cap
-Nat
n Ca
th W
mala
rn C
Limp
Gau
Free
ern
Zulu
ther
Nor
Mpu
te
East
Wes
Kwa
Nor
Figure 3 indicates that 477 submissions were from small levy-paying companies (1-49 employees), 162 from medium levy-paying
companies (50-149 employees) and only 74 were large levy-paying companies (150 plus employees). Indicator 2.1 of the NSDS II states
that by March 2010 at least 80% of the employment equity targets of large firms and at least 60% of those of medium firms should be
supported by skills development. The analysis of the table against the SLA with the DHET shows that these targets have been exceeded.
Figure 3: Submission of WSPs by organisational size
WSP/ATR Submission by Organisational Size

Large
80
Medium
175
Small
526

Sector Skills Planning and Research (continued)
Identification of Scarce and Critical Skills

in the Sector
Following the approval of the 2009-2010 SSP update by the
Department of Labour, the ETDP SETA developed the scarce and
critical skills guide which was communicated to constituencies. The
guide is used to create awareness of the scarce and critical skills
to the Skills Development Facilitators (SDFs) and Sector Skills
Specialists in the ETD sector.
In this context, scarce skills refer to occupations in which there

are few or no qualified and experienced people currently and in
the future to fill the occupations. This shortage might be due to
relative scarcity (i.e. suitable skilled people are available but do
not meet other employment criteria such as geographic location,
equity considerations and replacement demand), or absolute
scarcity (i.e. there are fewer, if any people in the country with the
requisite skills, education and training.) The national analysis of the
demand and supply in the 2009-2010 SSP update has shown a
scarcity in the following top occupations in the sector:
• Finance Managers;
• School Teachers: Mathematics, Natural Sciences, Pre-Primary
and Technology; and
• Early Childhood Practitioners.
The national analysis of the demand and supply in the 2009-2010

SSP update has also shown that the following require specialised
top up skills in the sector:
• Corporate Governance;
• Project Management;
• Labour Relations and Organisational Development;
• Policy Analysis, Development and Implementation;
• Leadership and Management with special focus on
Education Management;
• Finance;
• Research Methodologies; and
• Curriculum Development.
The communication of the scarce and critical skills was done

through a number of workshops conducted in each of the
Provinces. The target was to reach out to 800 SDFs and Sector
Specialists and the SETA achieved 1,102.
In addition to the dissemination of information on scarce

and critical skills to the SDFs, sector specialists and others,
the SETA has identified and funded appropriate and relevant
skills development interventions and programmes through its
discretionary grants for employers and unemployed youth.

Quality Assurance and
Provider Support
Education and Training Quality Assurers (ETQAs) are accredited Development: Youth, Level 4, Learning Programme ID
to certify providers; promote quality; monitor provision; evaluate 76987 against Qualification ID 67509; and
and facilitate moderation of assessment; register assessors; co- • Further Education and Training Certificate: Generic
operate with ETQA moderator bodies; recommend new or Management: School Governing Bodies, Level 4, Learning
modifications to standards and qualifications to NSBs; maintain a Programme ID 74672 against Qualification ID 57712.
SAQA acceptable data base; submit reports to the Authority; and
any other SAQA assigned functions. Accreditation of Constituent Providers
New Qualifications Allocated to the During the financial year the ETDP SETA accredited 109 providers
ETDP SETA and re-accredited 89 providers. The ETDP SETA identified the
following challenges as reasons for organisations being unsuccessful
The following nine qualifications were allocated to the ETDP in the accreditation process:
SETA’s scope for the period 2009/10:
• Learning programmes not aligned to the NQF; and
• Certificate: Teaching, Training and Assessing Learning, Level 5 • Organisations not having registered assessors and
(ID 64695) – Learning Programme against Qualification ID moderators for the qualifications that they had applied for.
61972;
• FETC: Archives and Records Management, Level 4 (ID Provincial capacity building workshops were conducted to assist
64069); providers with these challenges.
• National Certificate: Community Development, Level 3 (ID
66749); To increase the pool of accredited providers in the Northern
• National Diploma: Orientation and Mobility Practice, Level 5 Cape, the ETDP SETA placed eight (8) organisations on a focused
(ID 67373); development programme to assist in the accreditation process.
• Further Education and Training Certificate: Community
Development: ECD, Level 4, Learning Programme, ID 76984 Evaluation of Learning Programmes
against Qualification ID 67509;
• Further Education and Training Certificate: Community Due to the high rate of non-approved learning programmes,
Development: Life Skills, Level 4, Learning Programme, ID the ETDP SETA developed a manual to assist providers in the
76991 against Qualification ID 67509; Learning Programme Evaluation (LPE) process. This manual clearly
• Further Education and Training Certificate: Community outlines all procedures, guidelines and requirements for learning
Development: Volunteerism, Level 4, Learning Programme programme evaluation.
ID 76983 against Qualification ID 67509;
• Further Education and Training Certificate: Community

Quality Assurance and Provider Support (continued)
Verification of Moderated Assessment The rationale behind the choice of provinces was to ensure SETA
representation, empower the people and facilitate access to
Verification is a process that authenticates the moderation centres of learning.
processes externally and confirms or overturns moderation
findings. The purpose of verification is to confirm whether specific New venture creation
learners have actually met the outcomes of learning programmes.
It is in the interest of the ETDQA to verify that assessment The purpose of the New Venture Creation (NVC) programme
has been properly conducted and moderated. The ETDP SETA is to support small and micro enterprises in the development of
adopts a developmental approach in assisting providers to meet new job creation programmes for young people.
requirements.
The ETDP SETA, in partnership with Maccauvlei Learning
Certification Academy and NEOSHO 119 (Pty) Ltd., aims to create sustainable
enterprises whilst equipping future enterprise leaders with
The ETDP SETA issues certificates for full qualifications upon relevant entrepreneurial knowledge, skills and behaviours.
completion of the learning programmes. A total of 8,771
certificates were issued in 2009/10 to learners for 19 full The twelve month programme, known as the Vuka Mentorship
qualifications, of which 83% of certificates issued were for ECD Programme, has supported one hundred and twelve (112)
(NQF Level 1 – 2,786, NQF Level 4 – 3,743 and NQF Level unemployed young people from Gauteng, Mpumalanga, Limpopo,
5 – 752). Other programmes included ODETD, DEV PRAC; North West, Eastern Cape and Western Cape. It involves young
ABET Practitioners and Environmental Education Training and people who have been trained on the National Certificate:
Development Practices. New Venture Creation Levels 2 and 4. Having fulfilled all the
requirements of the programme, business development loans of
up to R20,000 can be offered to ensure that graduates can enter
Other Strategic Interventions mainstream business.
Institutes of Sectoral or Occupational Excellence Challenges

The ETDP SETA carried out the NSDS objective 5.1 mandate by
recognising eight (8) ISOEs (of which three (3) from the Western Accreditation of training providers in rural areas
Cape formed a consortium) thus achieving the five (5) year target
set. Part of the ETDP SETA’s mandate is to accredit providers and
approve programmes to enhance the quality of learning and
The ISOEs were established in the following provinces: training and to ensure an adequate pool of providers. However,
there are a small number of accredited training providers in
• Northern Cape – Northern FET College: to establish an rural areas due to poor infrastructure and other socio-economic
ECD Resource Centre and train FET Artisan Facilitators on factors. To address this challenge, the SETA has designed a
assessment and moderation of artisans; rural development strategy to increase the number of training
• North West – Orbit FET College: to establish an ECD providers.
Resource Centre in Mankwe (a rural area near Rustenburg)
that will assist the community around Mankwe; Completion of programmes
• Mpumalanga – Gert Sibande FET College: to establish an
ECD Resource Centre and train FET lecturers on artisan Workers enrolled in programmes such as learnerships,
assessment and moderation; apprenticeships and academic studies through bursaries are
• Western Cape – Consortium comprising South Cape taking longer to complete these programmes due to competing
College, Cape FET College and Grassroots Adult Education priorities between workplace demand and career development.
Trust (NGO): to translate ECD material to Xhosa and
Afrikaans and to align ECD material with the rural context; The ETDP SETA envisages the development of a workplace
• Free State – Maccauvlei: to train 18 emerging providers to learning framework, in consultation with employers, which will
maintain their organisations, manage projects, and design provide employees with some time off to focus on their learning.
learning material and Quality Management Systems;
• Gauteng – Regenesys: to develop ABET learning material Part of the challenge is that the ETDP SETA offers programmes
for use by all SETA providers and train future trainers on that are offered by other SETAs and the learners themselves are
the use of the material. often quality assured by other SETAs. The ETDP SETA is trying to
control this unfavourable situation by entering into Memorandum
of Understandings (MoUs) on quality assurance issues with other
ETQAs.

Recruitment of learners living with disabilities
Reaching out to persons living with disabilities in some provinces

remains a challenge because of undifferentiated recruitment
strategies. In the period under review, the ETDP SETA managed
to achieve this recruitment target through a focused intervention
on persons with disabilities. This strategy will be intensified in the
future.
Placement of learners with disabilities in the workplace is also a

challenge. It needs to be impressed upon employers that they
should be ready to host and employ persons with disabilities and
that workplaces must be disabled friendly.

Support Services
Human Resources Employee wellness
The ETDP SETA has a wellness policy and in December 2009 two
Building internal human capital
days were devoted to employee wellness initiatives. Two aspects
of wellness were covered, namely HIV/AIDS and the importance
The ETDP SETA has always recognised its responsibility in respect
of healthy life styles and, given the recent global financial crisis, the
of the ongoing growth and development of its staff members, with
second day was devoted to educating staff on the importance
regard to both training requirements to facilitate the day to day
of personal financial planning. Participants in the latter workshop
operational needs of the organisation and the longer term growth
were given ETDP SETA sponsored access to an internet based
of staff so that they may meet their aspirational and career needs.
financial planning tool for three months.
Staff development is driven by individual inputs made through the
Performance Management and Development System. (PMDS) In Employment equity
this regard, during the course of the financial year, a total of 65
short term skills development programmes were attended by staff The ETDP SETA identifies with and understands its responsibility
and 41 bursaries for further study were approved. and duty to ensure employment equity for those previously
disadvantaged and is proud of its efforts to recruit and develop
Ongoing staff development contributes indirectly to ensuring that previously disadvantaged individuals as reflected in Table 8.
the ETDP SETA achieves its quantitative and qualitative strategic
objectives.
Succession planning continued at management level with three

staff members being appointed, with the approval of the Board,
as Acting Regional Managers. In addition, the Research and
Constituency Support units were combined and an Acting Sector
Skills and Research Manager was appointed to lead the area.
Further, an additional staff member was appointed as Acting
ETQA Manager.

Support Services (continued)
Table 8: Staff and equity profile per occupational group and Peromnes [P] grade as at 31 March 2010
Female Male
Grade Designation Black Coloured Indian White Black Coloured Indian White Total
P3 CEO 1 0 0 0 0 0 0 0 1
P4 COO and CFO 0 0 0 0 1 1 0 0 2
P5 Managers 1 0 0 0 0 0 0 1 2
P6 HODs 5 0 0 1 6 1 2 0 15
P6 Senior Accountants 0 0 0 0 1 0 0 1 2
P7 Accountants 1 0 0 0 0 0 0 0 1
P8 Secretariat and PAs 3 0 0 0 0 0 0 0 3
P8 Skills Advisors 9 0 0 1 7 0 1 0 18
P8 Co-ordinators and
other officers 11 0 1 1 6 0 1 0 20
P9 Evaluators and other
operational staff 2 0 0 0 0 0 0 0 2
P10 Administrators 4 1 0 0 1 0 0 0 6
P10 ETQA Officers 4 0 0 0 4 0 0 0 8
P13 Receptionists 4 0 1 0 0 0 0 0 5
P15 Office Assistants 1 0 0 0 2 0 0 0 3
P15 Drivers 0 0 0 0 1 0 0 0 1
Total 46 1 2 3 29 2 4 2 89
Percentages 52.1 1.1 2.1 3.2 30.9 2.1 6.4 2.1 100
Persons living with
disabilities [number
of staff, included in
above total] 1 0 0 0 1 0 0 0 2
Of the total staff complement, 58.5% is female and 94.7% is black. Of the 89 staff members, two are persons living with disabilities. The
ETDP SETA has an approved complement of 104 personnel.
Staff turnover
During the reporting period, staff turnover decreased to 8.6% (previous year 11%), which management regards as an acceptable level.
This was made up of seven resignations, one dismissal and one staff member whose fixed term contract expired.
Six new staff members were appointed during the course of the year.
Labour relations
The ETDP SETA staff is unionised under the National Education, Health and Allied Workers Union (NEHAWU) and 84% of staff are paid
up members.

ETDP SETA Staff Organogram
ETDP SETA Staff Organogram
Office of the CEO
Chief Executive
Officer
Executive Office Personal
Co-ordinator Assistant
Marketing and
Governance
Communications
Co-ordination
Manager
Senior (HOD) Senior

Board Chamber
Communications Research
Secretariat Secretariat
Officer Specialist
Communications Research
Officer Officer
Information
Data Analysts
and Records
x2
Management Office
Office of the CEO posts: 15
Summary
Office of the CEO: 15
Reception and Operations: 64
Switchboard Support Services: 25
Total: 104

Operations
Chief
Personal
Operations
Assistant
Officer
HOD: HOD: Project Manager:

Administrative Manager: Quality
Constituencies Performance Provincial
Co-ordinator Assurance
and Programmes Monitoring Co-ordination
HOD:
Administrative
Learnership
Co-ordinator
Administration
Projects Administrator Assistant

Co-ordinator Accrediation Manager ETQA
Provincial Co-ordinator Co-ordinator

ECD & ABET
Co-ordinators Programme Assessor
Co-ordinator
9 Posts Evaluation Registration
Co-ordinator
FET & HET Skills Advisors Co-ordinator
Provider
Co-ordinator 18 Posts Verification
Capacity Building
Educator Co-ordinator
ETQA Officers Co-ordinator
Development Validation &
9 Posts Monitoring
Co-ordinator Certification
Trade Union &

Political Parties, Receptionists Co-ordinator Administrator
Lib and Res Orgs 3 Posts Accreditation Certification
Co-ordinator
Operations posts: 64
SMME, BEE
Summary
& Internship
COO: 15
Workplace
Conceptualisation: 64
Agreements L/Admin: 25
Co-ordinator Implementation: 42
ETQA: 12
Total: 64

ETDP SETA Staff Organogram (continued)
Support services
Chief Financial Personal

Officer Assistant
Human HOD:
Senior IT Finance Financial
Resources Supply Chain
Specialist Manager Accountant
Manager Management
Assistant
Administrator Payroll Officer
Accountant
Senior
Finance HR
Management
Administrator Practitioner
Accountant
Mandatory
ECD & ABET Office Assistants
Grants
Co-ordinator 3 Posts
Co-ordinator
HR
Grants
Administrator
Administrator
2 Posts
Travel
Co-ordinator
Supply Chain
Co-ordinator
Travel
Administrator
Administrator
Support services posts: 25
Driver

Governance
The ETDP SETA Board is allocated to the ETDP SETA Discretionary Fund and 10% goes
towards the administration of the ETDP SETA.
The ETDP SETA is governed by a Board comprised of an equal
representation of organised labour and organised employers, The duties, functions and composition of the Chambers are
representing 12 constituent member organisations. The employer determined by the Board in accordance with the ETDP SETA
constituency is made up of levy-paying organisations and constitutional prescripts. Amongst others, their roles and functions
public employer organisations which are mainly the National include:
Department of Education and the nine Provincial Departments of
Education. • providing an inclusive forum for the sector to interact
and share information on the sector’s training needs and
The major responsibilities of the Board include the following: strategies;
• identifying possible projects and facilitating stakeholder
• “fiduciary duty” - an obligation to pursue the ETDP participation in project planning in support of Chamber
SETA objectives with required levels of competence constituency needs;
and integrity; • providing regular reports and feedback to Chamber
• “duty of loyalty and fair dealings” - the Board has adopted constituencies; and
a Code of Conduct which is binding to all governance • building the capacity of representatives of the sector to
structure members; and participate in ETDP SETA activities.
• “duty of supervision” – which ensures that the skills
development mandate is carried out in line with the Skills The following organisations are members of the Levy Chamber:
Development Act, Public Finance Management Act (PFMA)
and all other applicable legislation in the SETA environment. • Libraries and archives;
• Political parties as employers;
• Research institutions;
The Budget and Levy Chambers • NGOs and community-based organisations (CBOs);
• Trade unions as employers;
The ETDP SETA established two Chambers, namely: the Budget • Public higher education institutions;
Chamber and the Levy Chamber. The Budget Chamber is made • Further education and training institutions as employers;
up of nine Provincial Departments of Education, the National • Early childhood development centres;
Department of Education and Labour representing employees. • Independent schools;
The Departments of Education contribute 10% of 1% of their • Public schools governing bodies as employers; and
payroll towards the administration of the ETDP SETA. The levy- • Private education and training providers/institutions and
paying organisations in the Levy Chamber contribute 1% of their professional organisations.
payroll towards skills development. Of this 1%, 20% is allocated to
the National Skills Fund, 50% is paid out in mandatory grants, 20%

ETDP SETA Governance (continued)
Establishment of five new Chambers: The Finance Committee reviewed the monthly and quarterly
organisational performance reports, diligently executed its
overseeing role including raising issues that warranted the
In its quest to improve the quality of engagement and broad
Board’s attention and also reported to the Board on the status of
stakeholder participation, the ETDP SETA Board intends to
accounting controls.
replace the current two Chambers with five new Chambers
in terms of its amended constitution. The ETDP SETA believes
The Audit Committee scrutinised the internal auditor’s reports
that the amendments are critical to the quality improvement,
and further reported to the Board on the effectiveness of the
operational efficiency and good corporate governance of the
systems of financial and risk management and internal controls.
ETDP SETA. These amendments are critical for the preparation of
NSDS III.
The unqualified audit opinion of the Auditor-General once
The following are the five new Chambers to be launched again bears testimony to the effective relationship between
in August 2010, which are demarcated as per the ETD these committees, the Board and the ETDP SETA’s executive
constituencies: management. The ETDP SETA will ensure that these pillars of
good corporate governance continue their sterling efforts in the
• Higher Education and Research; next five years of the implementation of NSDS III.
• Schooling (both public and private);
• Early Childhood and Development (ECD) and Adult Basic Human Resources Committee
Education and Training (ABET);
• Further Education and Training (FET) and Technical The Human Resources Committee is responsible for monitoring,
Vocational Education and Training (TVET); and evaluating, reviewing and advising on matters in the following
• Education, Training and Development Provisioning and functional Human Resources areas of the ETDP SETA and any
Practitioner Development. other areas mandated to it by the Board or EXCO:
The ETDP SETA strongly believes that the establishment of • Human Resources Policy;
these new Chambers will ensure that the skills shortage and the • Human Resources Strategy and action plans including
institutional challenges in the various ETD sub-sectors will be but not limited to staff development and performance
appropriately addressed. management;
• Employee relations, including recommending mandates to
The New SETA Landscape the EXCO /Board for use by the ETDP SETA management
in their deliberations with the recognised union; and
With effect from November 2009 SETAs were transferred from • Remuneration and compensation (through the
the DoL to the Department of Higher Education and Training. Remuneration Sub-committee).
The Minister of HET, extended the National Skills Development
Strategy II 2005 - 2010 (NSDS II) by an additional year, to the end Remuneration Committee
of March 2011.
The ETDP SETA’s Remuneration Sub-committee reports to the
This allows the SETAs to continue to operate within the same Human Resources Committee and has as its areas of responsibility,
mandate until a new SETA landscape is established by the Minister. the formulation and review of the remuneration policy and the
The pronouncement of the new SETA landscape is expected specific remuneration packages of the ETDP SETA staff, linked to
in October 2010. The ETDP SETA will, in the next financial year, the Peromnes Job Evaluation grading system adopted by the SETA.
consider best practice recommendations and apply the principles The Remuneration Committee makes recommendations to the
of the King III Report and Code on Corporate Governance, which Human Resources Committee on the following issues:
became effective on 1 March 2010.
• The remuneration policy and salary structure/s for the
ETDP SETA Governance Committees ETDP SETA;
• The PMDS;
Audit and Finance Committees • The annual salary increments, through negotiations with the
recognised employee union;
• The current ETDP SETA salaries for managers; and
During the financial year under review, the ETDP SETA complied
• The job evaluation and benchmarking of positions and
with the PFMA requirements by constituting a Finance and an
ETDP SETA salaries.
Audit committee. These committees played key roles in assisting
the Board in carrying out its financial management responsibilities
as reflected in section 51 of the PFMA.

Education and Training Development Quality Broad Labour and Broad Employer
Assurance (ETDQA) Permanent Committee Forums
This committee is responsible for Quality Assuring the ETDP SETA These forums provide a platform for constituencies to debate and
learning programmes and accreditation of training providers. discuss skills development as it pertains to their specific needs.
Broad roles and responsibilities of the Key Activities

five Chambers
The governance structure members participated in various
activities during the 2009/10 financial year, including capacity
Higher Education and Research Chamber building programmes, in order to broaden their understanding of
“Good Corporate Governance” practices. Activities included:
This Chamber is responsible for identifying needs in the HE and
Research sector in order to improve the supply of, and demand
for, skills in the labour market. Sector Skills Planning
The Board and Chambers took part in broad consultation

FET and TVET Chamber towards developing the SSP for 2009/10 before it was approved
for submission to the Department of Higher Education & Training.
This Chamber has been established to ensure that the FET
Further engagements took place with the Board to foster an
sector becomes a viable sector for post-school education to
understanding of sector needs and the scarce and critical skills
curb unemployment of youth due to lack of vocational and
identified.
occupational skills.
Strategic Planning Workshop

ABET and ECD Chamber
The Executive Committee, Committee Chairpersons and
The ABET and ECD sub-sectors are key to developmental Management of the ETDP SETA convened a two-day strategic
processes in our country and need focussed attention. The ETDP planning session in January 2010 to review and evaluate the
SETA is committed to adult education and training and ECD and ETDP SETA’s five year performance against the implementation
this Chamber will give the specific attention required. of the National Skills Development Strategy II (2005 – 2010).
The workshop provided an opportunity to critique the five year
ETDP and Provisioning Chamber strategic plan (2010 – 2015) and the 2010/11 Business Plan within
the context of the envisaged NSDS III. The primary objective
was to ensure that these business instruments will indeed be
This Chamber focuses on ETD practitioners and providers to
implemented successfully and shape the organisation’s strategic
ensure that the quality of provisioning is enhanced by building
direction for the next five years.
the knowledge and skills base in various fields of ETD. The
Chamber will also incorporate the notion of communities of
experts, RPL and other quality related issues and will work in Induction and Orientation of Governance
close collaboration with the Quality Council for Trades and Structure Members
Occupations..
A two-day workshop was held in February to induct and orientate
Schooling Chamber (Private and Public) governance structure members on the ETDP SETA’s amended
constitution, their roles and functions, the business plan as well as
Since schooling constitutes the ETDP SETA’s biggest the ETDP SETA’s mandate and general operations.
constituencies, this Chamber has been established to represent
the GET and FET sectors. It will be used as a platform to debate
and discuss issues relating to teachers such as teacher supply
and demand, and continuous professional development. It will
also provide a platform to pursue the resolutions of the teacher
summit and other initiatives, to improve teaching and learning.

Audit Committee Report
The Audit Committee is pleased to present its report for the In our opinion, based on the report from the internal and external
financial year ended 31 March 2010. auditors and information reported to management during the
Audit Committee meetings, certain identified weaknesses were
Responsibility displayed in the internal control environment and procedures.
Management has instituted controls to rectify these identified
The Audit Committee has complied with its responsibilities as weaknesses.
stipulated in Section 77 of the PFMA 1 of 1999 and Treasury
Regulation 3.1. The Quality of Quarterly Performance
and Financial Performance Reports
The Audit Committee also reports that it has adopted, with
approval from the Board, appropriate formal terms of reference In our opinion, based on the report from internal and external
as its Audit Committee Charter. This Audit Committee Charter auditors, quarterly management reports produced and delivered
has been reviewed on an annual basis to ensure its continuing to stakeholders have been adequate to provide necessary financial
relevance and effectiveness. The Audit Committee has regulated information. Performance information was provided as part of
its affairs in compliance with this charter and has discharged all its these quarterly reports.
responsibilities as contained therein.
Evaluation of Annual Financial

Effectiveness of Internal Controls
Statements
The system of internal controls is designed to provide cost
effective and reasonable assurance that assets are safeguarded, The Audit Committee has evaluated the ETDP SETA’s annual
that working capital is managed efficiently and that performance financial statements and reviewed the Auditor-General’s
information compiled is accurate and reliable. management report and report on the audit opinion. We are
satisfied that the Auditor-General has made valuable findings,
In line with the requirements of the PFMA and King III Report which were communicated to management and the Board
on corporate governance, internal audit provides the Audit through the management report. The Audit Committee is also
Committee and management with reasonable assurance that satisfied that management has made meaningful comments on the
the internal controls are appropriate for the identified business management report.
risks. This is achieved by means of a risk management process
as well as the institution of corrective action and suggestions for
improvement of internal control processes.

The Audit Committee has:
• Reviewed and discussed the audited annual financial

statements to be included in the annual report with the
Auditor-General, the Chief Executive Officer and the Board;
• Reviewed the Auditor-General’s management report and
management’s responses thereto; and
• Reviewed the changes in accounting policies and practices;
The Audit Committee accepts the Auditor-General’s conclusion

on the annual financial statements and is of the opinion that the
audited annual financial statements should be accepted and read
together with the Auditor-General’s report.
Mr Vusi Mokwena CA (SA)

Chairperson – Audit Committee

Report of the Auditor-General to Parliament
on the financial statements of the Education Training and Development Practices
Sector Education and Training Authority (ETDP SETA) for the year ended
31 March 2010
Report on the Financial Statements Auditor-General’s responsibility
As required by section 188 of the Constitution of the Republic

Introduction
of South Africa, 1996 read with section 4 of the Public Audit
Act, 2004 (Act No. 25 of 2004) (PAA) and section 14(6) (a)
I have audited the financial statements of the ETDP SETA, which
of the Skills Development Act, 1998 (Act No. 97 of 1998),
comprise the statement of financial position as at 31 March 2010,
my responsibility is to express an opinion on these financial
the statement of financial performance, statement of changes in
statements based on my audit.
net assets and cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory
I conducted my audit in accordance with International
information, as set out on pages 39 to 71.
Standards on Auditing and General Notice 1570 of 2009 issued
in Government Gazette 32758 of 27 November 2009. Those
Accounting Authority’s responsibility for the financial standards require that I comply with ethical requirements and
statements plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material
The accounting authority is responsible for the fair presentation misstatement.
of these financial statements in accordance with South African
Standards of Generally Recognised Accounting Practice (SA An audit involves performing procedures to obtain audit evidence
Standards of GRAP) and in the manner required by the PFMA of about the amounts and disclosures in the financial statements.
South Africa, 1999 (Act No. 1 of 1999) (PFMA). This responsibility The procedures selected depend on the auditor’s judgement,
includes: designing, implementing and maintaining internal control including the assessment of the risks of material misstatement of
relevant to the preparation and fair presentation of financial the financial statements, whether due to fraud or error. In making
statements that are free from material misstatement, whether due those risk assessments, the auditor considers internal control
to fraud or error; selecting and applying appropriate accounting relevant to the entity’s fair presentation of the financial statements
policies; and making accounting estimates that are reasonable in in order to design audit procedures that are appropriate in the
the circumstances. circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statements.
I believe that the audit evidence I have obtained is sufficient and Report on other legal and Regulatory
appropriate to provide a basis for my audit opinion.
requirements
Opinion In terms of the Public Audit Act of South Africa and General notice
1570 of 2009, issued in Government Gazette No. 32758 of 27
In my opinion, the financial statements present fairly, in all material November 2009 I include below my findings on the report on
respects, the financial position of the ETDP SETA at 31 March predetermined objectives, compliance with the PFMA and Skills
2010 and its financial performance and its cash flows for the year Development Act (SDA) and financial management (internal
then ended, in accordance with SA Standards of GRAP and in the control).
manner required by the PFMA.
Findings
Emphasis of matter
Predetermined objectives
I draw attention to the matters below. My opinion is not modified
No significant matters to report.
in respect of these matters:
Compliance with laws and regulations

Significant uncertainties
As disclosed in note 21.4, one of the ETDP SETA service
providers served the organisation with a summons in which the
plaintiff indicated that it had provided services in the 2006/07 Internal Control
financial year and their claim of R324 300 is being disputed. The
matter has not been resolved at date of my report. I considered internal control relevant to my audit of the financial
statements and the report on predetermined objectives and
Restatement of corresponding figures compliance with the PFMA and SDA, but not for the purposes of
As disclosed in note 24 to the financial statements, the expressing an opinion on the effectiveness of internal control. The
corresponding figures for 31 March 2009 have been restated matters reported are limited to the deficiencies identified during
as a result of errors discovered during 2009-10 in the financial the audit.
statements of the ETDP SETA for the year ended 31 March 2010.
Fruitless and wasteful expenditure
As disclosed in note 27, the ETDP SETA incurred the following
fruitless and wasteful expenditure during the year:
• R35 720 relating to the cancellation of flights for a UK 30 July 2010

delegation from British Airways to South African Airways Pretoria
• R5 070 000 relating to a cancellation of a contract because
of a court order to re-award a new contract in favour of
the litigant
• R12 000 relating to interest and penalties levied by the
commissioner for late payment of workman’s compensation.
Additional matters
I draw attention to the matters below. My opinion is not modified

in respect of these matters:
Re-licensing
As indicated in the Accounting Authority report the SETA’s were
established for a five-year period until 31 March 2010. However,
this license was renewed by the DHET until 31 March 2011.
A final proclamation with regard to the new SETA landscape is
expected later in the year.

Annual Financial Statements
for the year ended 31 March 2010
Contents
Report of the Accounting Authority 37
Statement of Financial Performance 39
Statement of Financial Position 40
Statement of Changes in Net Assets 41
Cash Flow Statement 42
Notes to the Financial Statements 43

Report of the Accounting Authority
The ETDP SETA was established in March 2000 in terms of the had not been remunerated. The dispute involved Information
Skills Development Act (No. 97 of 1998) (as amended). Communication Technology training of unemployed learners in the
provinces of Limpopo, Mpumalanga and Gauteng.
Governance
The SETA had paid an amount of R972,900.00 and an outstanding
In carrying out its duties, the authority ensured that the ETDP amount of R324,300.00 was claimed as the final tranche for the
SETA complied with all relevant legislation. In the month of contract. Upon investigation, the SETA discovered that duplicate
March for each of the five years, management presented invoices had been submitted and duplicate learners had been
policies that either needed to be updated, or were new, for the reported against the claim. The ETDP SETA requested its
authority’s approval. The authority engaged with both internal and attorneys to take legal action. The matter had not been resolved
external auditors in order to gain assurance that management at the time of the report.
was complying with the policies. The authority maintained its
monitoring role over performance, risk management and internal Also during the financial year, a training provider who had
controls via the reports that were submitted by management tendered for work at the ETDP SETA sued the ETDP SETA,
and further interrogated by committees of the authority for alleging that the internal procurement processes had prejudiced
recommendation to the authority. their organisation. Judgment was handed down in favour of the
litigant. The ETDP SETA accepted the court’s interpretation of the
facts and implemented the decision. This necessitated cancellation
Going Concern of six contracts that had already been awarded to other providers
and the re-award of the contracts to the litigant. The financial
The Minister of Higher Education and Training extended the implications of this decision are reported in the notes to the
mandate of the ETDP SETA to March 2011 and recommended financial statements.
that the ETDP SETA be included in the NSDS III mandate. The
authority has therefore prepared the annual financial statements
on the going concern basis. Remuneration of Governance Structures
and Senior Management
Litigation
In line with ETDP SETA policy, the authority members are not
During the year under review, one of the ETDP SETA’s service paid any sitting fee allowance for attending meetings. Members are
providers served the organisation with a summons for services only reimbursed for travel and out of pocket expenses incurred.
provided in the 2006/07 financial year for which it claimed it

Table 11: Remuneration of senior managers
Non- Period of
pensionable Performance Service Total Cost
Basic Allowances Medical Pension bonus (Months) to Company
Nombulelo S Nxesi
(Chief Executive
Officer) 743,631.63 204,088.32 18,981.00, 55,660.09 67,708.28 12 1,090,069.32
David Molapo (Chief
Financial Officer) 696,754.19 143,602.38 0 52,144.22 52,210.98 12 944,711.77
Valencia Mashego
(ETDQA Manager)* 132,011.75 33,468.78 5,848 8,109.21 0 3 179,437.74
Mike Wattkins (Human
Resources Manager) 608,086.42 0 0 45,494.19 18,535.33 12 672,115.94
Burton Malgas (Chief
Operations Officer) 593,287.14 155,767.16 23,578.50 44,796.90 24,713.76 12 842,143.46
Nondumiso Msomi
(Marketing and
Communications
Manager) 617,848.21 0 0 34,234.37 0 12 652,082.58
Total 3,391,619.34 536,926.64 48,407.50 240,438.98 163,168.35 - 4,380,560.81
* Resigned June 2009
Events after the Reporting Date

National Treasury approved the retention of accumulated surpluses and reserves of the ETDP SETA at the end of the 2009/10 financial
year.
Future Focus
Though the Honourable Minister’s pronouncement on NSDS III is still in the consultative stage, we are pleased that the ETDP SETA has
been recommended for re-certification and we therefore plan to:
• Increase the ETDP SETA’s physical presence in other provinces, in addition to the existing three;
• Partner with Further Education and Training Colleges (FETs) and HEIs as vehicles for the delivery of skills development by the
ETDP SETA; and
• Increase the delivery of our programmes in rural areas.
Approval of the Annual financial statements of the ETDP SETA

The annual financial statements for the year ended 31 March 2010, set out on pages 39 to 71 were approved by the accounting
authority in terms of section 51 (1) of the PFMA (No. 1 of 1999), on 21 May 2010, and are signed on its behalf by:
Ms Nombulelo S Nxesi Mr George Mudumela

Chief Executive Officer – ETDP SETA Chairperson – ETDP SETA Board


Statement of Financial Performance
2009/10 2008/09
Notes R’000 R’000
Revenue
Non-exchange Skills Development Levy: income 3 273,197 232,084
Non-exchange Skills Development Levy: penalties and interest 1,820 1,386
Investment income from exchange transactions 4 19,994 33,245
Other income from exchange transactions 5 227 752
Total revenue 295,238 267,467
Expenses
Employer grant and project expenses 6 (240,354) (201,734)
Administration expenses 7 (78,152) (65,668)
Finance charges 8 (86) (101)
Total expenses (318,592) (267,503)
Net Deficit for the year 2 (23,354) (36)

Statement of Financial Position
at 31 March 2010
2009/10 2008/09
Assets
Non-current assets
Property, plant and equipment 9 1,607 1,469
Intangible assets 10 523 1,620
2,130 3,089
Current assets
Accounts receivable from non-exchange transactions 11 186 154
Accounts receivable from exchange transactions 12 700 527
Cash and cash equivalents 13 265,393 295,222
266,279 295,903
Total Assets 268,409 298,992
Liabilities
Current liabilities
Accounts payable from non-exchange transactions 14 11,207 12,707
Accounts payable from exchange transactions 15 11,636 17,912
Current portion of finance lease obligations 15.1 - 190
Government grants and donor funding received in advance 17 - 128
Accrued employee payments 18 3,723 2,987
26,566 33,924
Total Liabilities 26,566 33,924
Net Assets and Liabilities 241,843 265,068
Reserves
Administration reserve 2,130 3,089
Employer grant reserve 360 83
Discretionary reserve 239,353 261,896
Total Reserves 241,843 256,068

Statement of Changes in Net Assets
Employer
Administration grant Discretionary Unappropriated
reserve reserve reserve Deficit Total
Notes R’000 R’000 R’000 R’000 R’000
Balance at
31 March 2008 3,740 - 261,364 - 265,104
Net deficit per
Statement of Financial
Performance - - - (36) (36)
Allocation of
unappropriated deficit 20,376 22,834 (43,246) 36 -
Excess reserves
transferred to
Discretionary reserve (21,027) (22,751) 43,778 - -
Balance at
31 March 2009 3,089 83 261,896 - 265,068
Prior period error 24 - - 129 - 129
Net deficit per
statement of Financial
performance - - - (23,354) (23,354)
Allocation of
unappropriated deficit 2 22,504 23,517 (69,375) 23,354 -
Excess of reserves
transferred to
Discretionary reserve (23,463) (23,240) 46,703 - -
Balance at
31 March 2010 2,130 360 239,353 - 241,843
The employer reserve of R360 000 is retained for the payment of mandatory grants for the member organisation who registered with
the ETDP SETA after June 30 2009, these organisations are allowed six months to submit their WSP/ATR in order to qualify for this
grant.

Cash Flow Statement
2009/10 2008/09
Cash flow from operating activities

Operating activities
Cash receipts from stakeholders 275,189 236,085
Levies received - Administration 100,742 86,145
- Employer grants 123,192 103,746
- Discretionary grants 49,263 42,193
Interest and penalties received 1,820 1,386
Other income 172 1,870
NSF Fund - 745
Cash paid to stakeholders, suppliers and employees (323,366) (260,645)

Grants and project payments (241,854) (196,215)
Compensation of employees (36,274) (33,260)
Payments to suppliers (45,238) (31,170)
Cash applied to operations 19 (48,177) (24,560)

Investment income 19,844 33,131
Net cash (outflow)/inflow from operating activities (28,333) 8,571
Cash flow from investing activities

Purchase of property, plant and equipment (1,423) (942)
Proceeds from disposal of property, plant and equipment 13 11
Finance costs (86) (101)
Net cash outflow from investing activities (1,496) (1,032)
Cash flow from financing activities

Increase in reserves - 129
Net cash outflow from financing activities - 129
Net (decrease)/increase in cash and cash equivalents (29,829) 7,668
Cash and cash equivalents at beginning of the year 295,222 287,554
Cash and cash equivalents at end of the year 13 265,393 295,222

Notes to the Annual Financial Statements
1. Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set out below and are, in all material
respects, consistent with those of the previous year, except as otherwise indicated.
1.1 Basis of preparation
The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice
(GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board (ASB).
1.2 Currency and level of rounding
These financial statements are presented in South African rands, as this is the currency in which all entity transactions are denominated.
Furthermore, all figures presented are rounded off to the nearest thousand.
1.3 Revenue recognition

Skills Development Levy transfers are recognised when it is probable that future economic benefits will flow to the ETDP SETA and
these benefits can be measured reliably. This occurs when the DHET either makes an allocation or payment, whichever comes first, to
the ETDP SETA as required by Section 8 of the Skills Development Levies Act (No. 9 of 1999). The Skills Development Levy transfer is
measured at the fair value of the consideration received. Payments from the Department of Education (DoE) are recognised when cash
is received.
1.3.1 Levy income
In terms of Section 3(1) and 3(4) of the Skills Development Levies Act (No. 9 of 1999), registered member companies of the ETDP
SETA pay a Skills Development Levy of 1% of their total payroll cost to the South African Revenue Service (SARS).
80% of skills development levies are paid over to the ETDP SETA (net of the 20% contribution to the National Skills Fund (NSF)).
Levy income is recognised at the earlier of either the transfer of monies by the DHET to the ETDP SETA or when cash is received.
The ETDP SETA refunds amounts to employers in the form of grants, based on information from SARS. Where SARS retrospectively
amends the information on levies collected, it may result in grants that have been paid to certain employers that are in excess of the
amount the ETDP SETA is permitted to have granted to employers. A receivable relating to the overpayment to the employer in earlier
periods is raised at the amount of such grant overpayment, net of bad debts and provision for irrecoverable amounts.
Revenue is adjusted for inter SETA transfers due to employers changing SETAs. Such adjustments are separately disclosed as inter SETA
transfers. The amount of the inter SETA adjustment is calculated according to the Standard Operating Procedure issued in October 2006
by the DoL.
When a new employer is transferred to the ETDP SETA, the levies transferred by the former SETA are recognised as revenue and
allocated to the respective category to maintain its original identity.
Employers who have annual payrolls below R500,000 have been exempted from further payment of skills development levies. In cases
where payments have been made by these employers in error, an accrual has been made for the refund of the levies.
1.3.2 Interest and penalties
Interest and penalties are recognised at the earlier of the transfer of monies by the DoL to the ETDP SETA or when cash is received.

Notes to the Annual Financial Statements (continued)
1.3.3 Government grants and other donor income
Conditional government grants and other conditional donor funding received are recorded as deferred income when they become
receivable and are then recognised as income on a systematic basis over the period necessary to match the grants with the related costs
which they are intended to compensate. Unconditional grants received are recognised when the amounts have been received.
1.3.4 Investment Income
Interest from investments is recognised when the bank has credited the investment with interest due in line with the maturity date of the
investment. Interest from call account is accrued for on a time proportion basis as advised by the banks at the reporting date.
1.4 Grants and project expenditure
A registered company may recover a maximum of 70% of its total levy payment by complying with the grant criteria in accordance with
the Skills Development Regulations issued in terms of the Skills Development Levies Act (No. 9 of 1999). Grants and project expenditure
are measured at the amounts incurred. These amounts represent the fair value of the transactions.
1.4.1 Mandatory grants payments
Mandatory grants expenditure is recognised when the submission by a member organisation of a WSP and the ATR within the agreed cut
off period has been approved by the ETDP SETA for payment. In the case where WSP/ATR has been approved and transfers from the
DHET have been received but actual payment has not been made, an accrual is made for the amounts payable. These grants are measured
at the amounts paid/payable which represent the fair value of the transaction. The amount payable is 50% of the levies paid to SARS by the
member organisation and remitted to ETDP SETA by the DHET.
1.4.2 Discretionary grants and project payments
Discretionary grants relate to 20% of levies paid to SARS by member organisations and remitted to ETDP SETA by the DHET plus
surplus from the administration budget, interest earned from the banks and forfeited mandatory grants. This grant is used to fund
training and skills enhancing programmes in the sector. The project expenditure is recognised when the training or the skills enhancing
programme has been delivered in accordance with the contract of agreement between the ETDP SETA and the training institution or
provider. These grants are measured at the amounts paid/payable which represent the fair value of the transaction.
1.5 Irregular and fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable
legislation, including:
- The PFMA; and

- The Skills Development Act.
Fruitless and wasteful expenditure means expenditure that was made in vain and could have been avoided had reasonable care been
exercised.
All irregular and fruitless and wasteful expenditure is charged against income in the period in which it is incurred.

1.6 Property, plant and equipment
Property, plant and equipment (owned and leased) is stated at historical cost less accumulated depreciation and adjusted for any
impairments. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on the straight-line method to write off the cost of each asset to estimated residual value over its estimated
useful life as noted below. The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each reporting date.
- Audiovisual equipment 10% - 21%

- Computer equipment 12.5% - 25%
- Kitchen equipment 12.5% - 15%
- Leasehold improvements 10% - 15%
- Office furniture and fittings 10% - 15%
- Office equipment 10% - 20%
- Minor assets 33.33% - 100%
- Motor vehicle 10% - 20%
Each part of an item of property, plant and equipment is depreciated separately. Depreciation commences when the items of property,
plant and equipment are available for use and ceases at the earlier date at which that asset is classified as held for sale or included in the
disposal group classified as held for sale and the date that the asset is derecognised.
The estimated useful life of the assets is limited to the remaining period of the licence issued to the ETDP SETA by the Minister of HET.
The remaining period has been extended for one year to March 2011. (2008/09: one year to March 2010).
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its
recoverable amount (i.e. impairment losses are recognised).
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into
account in determining the operating surplus/deficit.
1.7 Intangible assets
Intangible assets are stated at historical cost less accumulated amortisation and adjusted for any impairments. Historical cost includes
expenditure that is directly attributable to the acquisition of the item. Amortisation is calculated on the straight-line method to write off
the cost of each asset to its estimated residual value over its estimated useful life as shown below.
- Computer software 8% - 33.33%
Useful lives and residual values of assets are re-estimated annually to finite periods. The assets are then amortised over their re-assessed
useful lives.

1.8 Leasing
Leases of property, plant and equipment where ETDP SETA has substantially taken all the risks and rewards of ownership are classified as
finance leases. Finance leases are capitalised at inception of the lease at the lower of fair value of the leased property or the present value
of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant
rate on the outstanding finance balance. The corresponding rental obligations net of finance charges are charged to liability. The interest
element is charged to the Statement of Financial Performance over the lease period. Leases, where a significant portion of risks and
rewards of ownership are retained by the lessor, are classified as operating leases. Operating costs are charged against operating income
on a straight-line basis over the period of the lease.
1.9 Retirement benefit costs
The entity operates a defined contribution plan, the assets of which are held in separate trustee-administered funds. The plan is generally
funded by payments from the entity and employees, taking into account the recommendations of independent qualified actuaries.
Payments to defined contribution retirement benefit plans are charged to the Statement of Financial Performance in the year to which
they relate. When an employee has rendered a service during a period, ETDP SETA recognises the contribution payable to a defined
contribution plan in exchange for that service: (a) as a liability after deducting any contributions already paid. If the contribution already
paid exceeds the contribution due for the service, the ETDP SETA shall recognise that excess as an asset to the extent that it will lead to
a reduction in future payments and (b) as an expense.
The rules of the defined contribution plan determine the following in respect of contributions:
Contribution by employee = 7.5%

Contribution by employer = 7.5%
1.10 Provisions
Provisions are recognised when the ETDP SETA has a present obligation as a result of a past event and it is probable that this will result
in an outflow of economic benefits that can be estimated reliably. The amount of a provision is the present value of the expenditure
expected to be required to settle the obligation.
1.10.1 Provisions for Discretionary grants and commitments
No provision is made for projects approved at year end, unless the service in terms of the contract has been delivered or the contract is
of an onerous nature. Where a project has been approved, but has not been accrued for or provided for, it is disclosed as a commitment
in the notes to the financial statements.
1.11 Financial instruments
Financial assets and financial liabilities are recognised in the ETDP SETA’s Statement of Financial Position when the ETDP SETA becomes
a party to the contractual provisions of the instrument.
Financial instruments are initially measured at fair value, including transactional costs. Subsequent to initial recognition these instruments
are measured as set out below:

1.11.1 Financial assets
ETDP SETA’s principal financial assets are accounts receivable and other receivables and cash and cash equivalents.
Accounts and other receivables
Accounts and other receivables are subsequently measured at their amortised cost using the effective interest rate method and reduced
by appropriate allowances for estimated irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial assets or a portion thereof are derecognised when the contractual rights to the benefits specified in the contract expire
and ETDP SETA surrenders those rights or otherwise loses control of the contractual rights that comprise the financial asset. On
derecognition, the difference between the carrying amount of the financial assets and the sum of the proceeds receivable and any prior
adjustment to reflect the fair value of the asset that had been reported in net assets is included in surplus or deficit for the period.
1.11.2 Financial liabilities
The ETDP SETA’s principal financial liabilities are accounts payable and other payables.
All financial liabilities are measured at amortised cost, comprising original debts less principal payments and amortisations.
Gains and losses arising from a change in the fair value of financial instruments, other than available for sale of financial assets, are included
in surplus or deficit in the period in which they arise.
A financial liability or part thereof is derecognised when the obligation specified in the contract is discharged, cancelled or expires. On
derecognition, the difference between the carrying amount of the financial liability including related unamortised costs, and the amount
paid for it is included in the surplus or deficit for the period.
The fair values at which financial instruments are carried at the reporting date have been determined using available market values.
Where market values are not available, fair values have been calculated by discounting the expected future cash flows at the prevailing
interest rates. The fair values have been estimated using available market information and appropriate methodologies but are not
necessarily indicative of the amounts that the ETDP SETA could realise in the normal course of business. The carrying amounts of
financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values due to the short-term
trading cycles of these items.
Financial assets and liabilities are offset if there is any intention to realise the asset and settle the liability simultaneously and a legally
enforceable right to offset exists.
1.12 Net assets
This is represented by reserves as per the restrictions placed on the distribution of monies received in accordance with the regulations
issued in terms of the Skills Development Act 1998 (No. 97 of 1998).

The following reserves are utilised:
- Administration reserve
- Employer grants reserve
- Discretionary grants reserve
Member employer company levy payments are set aside in terms of the Skills Development Act and the regulations issued in terms of
the Act, for the purpose of:
2009/10 2008/09
% %
Administration costs of the ETDP SETA 10 10
Employer grants 50 50
Discretionary grants and projects 20 20
80 80
In addition, contributions received from public service employers in the national or provincial spheres of government may be used to pay
for administration costs.
Interest and penalties received from SARS as well as interest received on investments are utilised for Discretionary grants and projects.
Other income received is utilised in accordance with the stipulations of the funder.
The net surplus/deficit is allocated to the Administration reserve, the Employer grants reserve and the Discretionary grants reserve
based on the above.
Surplus funds are moved to the Discretionary grants reserve from the Administration reserve at year end. Employer grants reserve funds
that are not provided for specific grants are moved to the Discretionary grants reserve. Accruals are made for grants to be paid from
levies that have not been received at reporting date.
1.13 Impairment of assets
At each reporting period, the ETDP SETA assesses whether there is any indication that an asset may be impaired. If any such indication
exists, the ETDP SETA estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the
individual asset, the recoverable amount of the cash generating unit to which the asset belongs is determined.
The recoverable amount of the asset or cash generating unit is the higher of its fair value less cost to sell and its value in use.
If the recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount. This reduction is the
impairment loss. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss of assets carried at
cost less any accumulated depreciation or amortisation is immediately recognised in surplus or deficit.
A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is
immediately recognised in surplus or deficit.

1.14 Finance cost
The finance costs are recognised as an expense in the period in which they are incurred, unless the finance costs relate to a qualifying
asset, in which case the finance cost is capitalised to that qualifying asset.
1.15 Revenue and expenses from exchange and non-exchange transactions
Revenue from exchange transactions refers to revenue that accrued to the ETDP SETA directly in return for services rendered, the value
of which approximates the consideration received or receivable.
Revenue from non-exchange transactions refers to transactions where the ETDP SETA received revenue from another party without
directly giving approximately equal value in exchange. Revenue from non-exchange transactions is generally recognised to the extent that
the related receipt or receivable qualifies for recognition as an asset and there is no liability to repay the amount.
1.16 Comparative figures
Where necessary comparative figures have been adjusted to conform to changes in presentation in the current year.
1.17 Significant adjustments and estimates
In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented
and the related disclosures. Use of available information and the application of judgement are inherent in the formation of estimates.
Actual results in the future may differ from these estimates. These judgements and estimates include:
Impairment testing: Management used fair value less cost to sell, in identifying the assets that may have been impaired.
Provisions: Management used available information to determine estimation for provisions. These are measured at management’s best
estimate of the expenditure required to settle the obligation at reporting date.
Fair value measurement of revenue and financial instruments: The fair value of financial instruments for disclosure purposes
is estimated by discounting the future contractual cash flows at the current market interest rate that is available for ETDP SETA’s similar
financial instruments.

2. Allocation of Net Deficit for the Year to Reserves
Total per Total per

Statement of Statement of
Employer Financial Financial
Administration grants Discretionary Performance Performance
reserve reserve reserves 2009/10 2008/09
R’000 R’000 R’000 R’000 R’000
Total revenue 100,742 123,192 71,304 295,238 267,467
Skills Development
Levy: income
Admin levy income
(DHET) 24,633 - - 24,633 20,863
Grant levy income
(DHET) - 123,192 49,263 172,455 145,939
Skills Development Levy:
penalties and interest - - 1,820 1,820 1,386
Admin levy (DoE) 76,109 - - 76,109 65,282
Investment income - - 19,994 19,994 33,245
Other income - - 227 227 752
Total expenses 78,238 99,675 140,679 318,592 267,503
Administration expenses 78,152 - - 78,152 65,668
Finance charges 86 - - 86 101
Employer grants and project
expenses - 99,675 140,679 240,354 201,734
Net deficit per
Statement of Financial
Performance 22,504 23,517 (69,375) (23,354) (36)
A project expense is recognised when the training has been delivered in accordance with a contract. These relate to the portfolio
of evidence, uploading of learners on to the learner database and certification. Due to the possibility of learner drop-outs and the
uncertainty around the time by which a training provider will contractually be able to provide a portfolio of evidence of the successful
completion of training, no accruals or provisions are made in the financial statements. Instead, the funds are reported as commitments
and an application is made to National Treasury that these funds must be rolled over to future years to pay for training deliverables as
they happen. The reported deficit is as a result of project expenses recognised in the reporting period, whilst their related funding is in
the Statement of Financial Position under reserves. The cause of the deficit is communicated to National Treasury via the DHET.

3. Non-exchange Skills Development Levy Income
2009/10 2008/09
R’000 R’000
The total levy income per the Statement of Financial Performance is as
follows:
Levy income: Administration 100,742 86,145

Levies received 100,742 86,145
Levies received from levy payers 24,645 20,865
Government levies received 76,109 65,282
Inter SETA transfers in 1 2
Inter SETA transfers out (13) (4)
Levy income: Employer grants 123,192 103,746
Levy income: Discretionary grants 49,263 42,193
273,197 232,084
4. Investment Income from Exchange

Transactions
Interest income
Accrued 150 114
Bank deposits 19,844 33,131
19,994 33,245
5. Other Income from Exchange

Transactions
Other income comprises:

Recovery from NSF Funds - 745
Mandatory grants received 128 -
Other recoveries 44 -
Insurance recoveries 55 7
227 752
The NSF recovery relates to reimbursement to ETDP SETA of NSF expenses that were paid for by the ETDP SETA in 2007/08
financial year.

6. Mandatory and Discretionary Expenses

2009/10 2008/09
R’000 R’000
Mandatory grants 99,675 80,912
Disbursements 91,453 72,198
Accruals raised 8,222 8,714
Discretionary grants projects 140,679 120,822
Disbursements 135,666 107,545
Accruals raised 5,013 13,277
240,354 201,734
6.1 Discretionary expenditure consists of:
Direct project costs 140,679 120,822

140,679 120,822

7. Administration Expenses
2009/10 2008/09
Depreciation – current year 1,251 1,283
Amortisation – current year 1,097 285
Loss on disposal of property, plant and equipment 21 15
Operating rentals – buildings 4,389 4,106
Stationery and consumables 456 609
Maintenance, repairs and running costs 1,824 755
Machinery and equipment 1,824 565
Other - 190
Advertising, marketing and promotions, communication 2,289 2,119
Consultancy and service provider 259 992
Legal fees 703 27
Cost of employment 7.1 37,010 32,734
Travel and subsistence 12,954 9,941
Staff training and development 922 1,134
Remuneration to members of the audit committee 111 154
Auditors’ remuneration 1,714 1,671
External audit fees 1,183 685
Internal audit fees 531 986
Courier fees 710 426
Insurance 302 255
Bank charges 218 161
National ETDP SETA conference 7.2 - 4,514
Staff relocation 61 77
Printing and postage 479 347
Refreshments and catering 1,546 1,113
Teacher conference & unemployed graduates 3,457 -
Telephone and cellular phone 1,670 1,568
Water and electricity 1,073 518
Workshops and AGM 3,197 -
Other 439 864
Total per Statement of Financial Performance 78,152 65,668

7. Administration Expenses (continued)
7.1 Cost of employment
2009/10 2008/09
R’000 R’000
Salaries and wages 34,238 30,049
Basic salaries 29,082 23,103
Other non-pensionable allowances 4,940 5,082
Contract staff - 1,348
Leave payments 213 449
Overtime payments 3 67
Social contributions 2,772 2,685
Medical aid contributions 1,039 1,026
Pension contributions: defined contribution plans 1,583 1,516
UIF 150 143
37,010 32,734
Number of employees 89 94
Refer to the report by the accounting authority for disclosure
concerning emoluments of senior management
7.2 ETDP SETA conference takes place biennially. The next

conference is planned to take place in the 2010/11 financial year.
8. Finance Charges
Obligations under finance leases 86 101

86 101

9. Property, Plant and Equipment
Accumulated Closing
depreciation/ carrying
Cost impairment amount
R’000 R’000 R’000
For the year ended 31 March 2010
ETDP SETA assets

Computer equipment 2,685 (2,218) 467
Office furniture and fittings 1,869 (1,727) 142
Office equipment 798 (659) 139
Audiovisual equipment 395 (231) 164
Kitchen equipment 23 (19) 4
Leasehold improvements 250 (60) 190
Motor vehicle 559 (149) 410
Minor assets 412 (380) 32
6,991 (5,443) 1,548
Capitalised finance leases
565 (506) 59
Balance at end of year 7,556 (5,949) 1,607
ETDP SETA assets

Computer equipment 3,626 (3,033) 593
Office furniture and fittings 1,778 (1,474) 304
Audiovisual equipment 475 (361) 114
Kitchen equipment 19 (15) 4
Leasehold improvements 23 (18) 5
Motor vehicle 131 (98) 33
Minor assets 392 (326) 66
7,302 (6,009) 1,293
Capitalised finance leases
565 (389) 176
Balance at end of year 7867 (6398) 1,469
There is no property, plant and equipment that is pledged as security.

9. Property, Plant and Equipment (continued)
Carrying Carrying
amount amount
Movement summary 01/04/2009 Additions Disposals Depreciation 31/03/2010
2009/10 R’000 R’000 R’000 R’000 R’000
ETDP SETA assets

Computer equipment 593 352 (26) (452) 467
Office furniture and fittings 304 120 (1) (281) 142
Office equipment 173 125 (3) (156) 139
Audiovisual equipment 114 139 (3) (86) 164
Kitchen equipment 4 6 - (6) 4
Leasehold improvements 5 227 (1) (41) 190
Minor assets 66 26 - (60) 32
Motor vehicles 33 428 - (51) 410
Sub total 1,292 1423 (34) (1,133) 1,548
Capitalised finance
leases
Office equipment 177 - - (118) 59
177 - - (118) 59
Balance at 31 March 1,469 1,423 (34) (1,251) 1,607

Carrying Carrying
amount amount
Movement summary 01/04/2008 Additions Disposals Depreciation 31/03/2009
2008/09 R’000 R’000 R’000 R’000 R’000
ETDP SETA assets

Computer equipment 613 442 (23) (439) 593
Office furniture and fittings 563 36 - (295) 304
Office equipment 296 38 - (160) 174
Audiovisual equipment 205 18 (4) (105) 114
Kitchen equipment 9 - - (4) 4
Leasehold improvements 10 - - (5) 5
Minor assets 125 5 - (65) 66
Motor vehicle 65 - 1 (33) 33
Sub total 1,886 539 (26) (1,106) 1,293
Capitalised finance
leases
Office equipment 353 - - (177) 176
353 - (177) 176
Balance at 31 March 2,239 539 (26) (1,283) 1,469
10. Intangible Assets

Closing
Accumulated carrying
Cost amortisation amount
R’000 R’000 R’000
Computer software 2,597 (2,074) 523
2,597 (2,074) 523

Computer software 2,597 (977) 1,620
2,597 (977) 1,620

10. Intangible Assets (continued)
Carrying Carrying
amount amount
Movement summary 01/04/2009 Additions Disposals Amortisation 31/03/2010
2009/10 R’000 R’000 R’000 R’000 R’000
Computer software 1,620 - - (1,097) 523
1,620 - - (1,097) 523
Carrying Carrying
amount amount
Movement summary 01/04/2008 Additions Disposals Amortisation 31/03/2009
2008/09 R’000 R’000 R’000 R’000 R’000
Computer software 1,502 403 - (285) 1,620
1,502 403 - (285) 1,620
11. Accounts Receivable from Non-exchange Transactions
2009/10 2008/09
R’000 R’000
SDL receivables 176 148
Staff debtors 10 6
186 154
11.1 SDL receivables
Underpayment by levy paying entities

- Registered employers who have not paid levies that are owing
Opening balance 148 1,414
Realised during the year (148) (1,303)
Charged to income 176 37
Closing balance 176 148

12. Accounts Receivable from Exchange Transactions
2009/10 2008/09
Deposits 323 305
Interest receivable 150 114
Prepaid expenses 211 108
Sundry receivables 16 -
700 527
13. Cash and Cash Equivalents
Cash at bank and on hand 659 5,368

Cash at bank 658 5,367
Cash on hand 1 1
Short-term investments 264,734 289,854
Cash and cash equivalents at end of year 265,393 295,222
The credit quality of cash and cash equivalents are ensured by only
contracting with the top four financial institutions, as prescribed by National
Treasury. The carrying value, at which cash and cash equivalents are
disclosed, approximates their fair values.
As required in National Treasury Regulation 31.2, National Treasury

approved the banks where the bank accounts are held. The weighted
average interest rate on short-term bank deposits was 7.12%
14. Accounts Payable from Non-exchange

Transactions
Skills development grants payable 14.1 8,222 9,420

Inter SETA transfers - 30
DoE donation 2,500 2,500
Levies refundable to small employers 14.2 206 118
Liability resulting from straight-line valuation of leases 279 639
11,207 12,707

14.1 Skills development grants payable
Mandatory
grants 2009/10 2008/09
R’000 R’000 R’000
Opening carrying amount 9,420 9,420 3,986
Amounts utilised (9,420) (9,420) (3,282)
Unutilised provision - - 704
Charged to income 8,222 8,222 8,716
Closing carrying amount 8,222 8,222 9,420
14.2 Levies refundable
Small employers
- Small employers who have been exempted from the
payment of skills development levies but have made
payments in error.
Small
employers 2009/10 2008/09
R’000 R’000 R’000
Opening balance 118 118 -
Charged to income during the year 206 206 118
Refunded during the year (118) (118) -
Closing balance 206 206 118
15. Accounts Payable from Exchange

Transactions
2009/10 2008/09
Project creditors 5,013 13,276
Trade payables 4,662 2,722
Other accrued expenses 1,961 1,914
Capitalised lease obligations 15.1 - 190
11,636 18,102

15.1 Reconciliation between the total of minimum lease payments and the present value:
2009/10 2008/09
R’000 R’000
Up to 1 year
Future minimum lease payments - 217
Finance charges - 27
Present value - 190
Analysed for financial reporting purposes

Non-current finance lease obligations - -
Current finance lease obligation (recoverable within 12 months) - 190
Total finance lease obligations - 190
Finance lease repayments for the year - 293
Assets held under finance leases comprise seven photocopiers shown

under property, plant and equipment as category Capitalised Leased Assets
(See notes 9 and 21).
16. National Skills Fund: Special Projects
Opening balance - 686

Interest received - 58
Utilised and recognised as revenue – conditions met per Statement of
Financial Performance - (745)
Skills programmes - 1
Closing balance per Statement of Financial Position - -
17. Government Grants Funding Received in

Advance
Opening balance 128 128

Refunded to donor (128) -
Closing balance per Statement of Financial Position - 128
Current - 128
These were unspent funds from the European Union via the Department of Labour. The ETDP SETA refunded the amount via the
Department of Labour in the current financial year.

18. Accrued Employee Payments
Employee Employee
leave 13th cheque
accrued accrued 2009/10 2008/09
R’000 R’000 R’000 R’000
Opening carrying amount 1,627 1,360 2,987 3,513
Amounts utilised (2,329) (2,596) (4,925) (2,683)
Charged to income 2,922 2,739 5,661 2,157
Closing carrying amount 2,220 1,503 3,723 2,987
The liability for the payment of leave pay is accrued for and is calculated as number of leave days accumulated at the daily pay rate per
payroll.
An accrual is made for the payment of a 13th cheque at the end of November for those employees who have opted to take a 13th
cheque and is calculated each month as the number of employees involved times one twelfth of their 13th cheque. This is accumulated
to date of payment.
19. Reconciliation of Net Cash Flow from Net Deficit to Cash Generated from
Operations
2009/10 2008/09
R’000 R’000
Net deficit as per Statement of Financial Performance (23,354) (36)
Adjusted for non-cash items:
Depreciation/Amortisation 2,348 1,568
Loss on disposal of property, plant and equipment 21 15
- ETDP SETA assets 21 15
Increase/(decrease) in provisions 736 (526)
Adjusted for items separately disclosed:
Decrease in special project funding (128) (686)
Investment income (19,758) (33,030)
(Increase)/decrease in receivables (205) 1,749
(Decrease)/increase in payables (7,837) 6,386

Cash applied to operations (48,177) (24,560)
20. Deficit
At year end, the ETDP SETA reported a deficit and notified the DHET in writing.

21. Commitments and Contingences
21.1 Discretionary reserve
Of the balance of R239 million available in the Discretionary reserve at the end of March 2010, the commitments detailed below of
R86 million have been made for projects and skills priorities. Expenses that relate to these commitments are included in grant expenses
in the Statement of Financial Performance. A request for the accumulation of these funds has been approved by National Treasury.
Balance of
commitments
Commitment New plus new
at Expenditure Balance of contracts contracts at
31/03//2009 in 2009/10 Commitments 2009/10 31/03/2010
R’000 R’000 R’000 R’000 R’000
ABET L1-4 18,840 11,009 7,831 870 8,701
Apprenticeship/Artisans 5,442 3,194 2,248 323 2,571
BEE 182 - 182 - 182
Bursaries 19,020 17,895 1,125 16,040 17,165
COMDEV L4 9,940 12,935 -2,995 8,801 5,806
Material development 1,303 264 1,039 - 1,039
Trade union qualification - - - 800 800
ECD L4 20,330 47,111 -26,781 31,423 4,642
ECD L5 14,334 1,304 13,030 - 13,030
Higher Education Management
Certificate 300 - 300 - 300
Internships 10,245 6,377 3,868 4,602 8,470
ISOE Support 2,245 453 1,792 1,330 3,122
SDF 283 - 283 73 356
Assessor 550 - 550 - 550
Mentoring and coaching 782 - 782 128 910
New venture 2,202 215 1,987 - 1,987
Non-ETD 4,291 4,421 -130 1,964 1,834
ODETD L5 5,614 3,707 1,907 2,812 4,719
PGCE 4,243 - 4,243 - 4,243
Research 977 4,634 -3,657 5,402 1,745
Skills programmes 103 23,182 -23,079 13,050 -10,029
Vouchers 4,303 1,385 2,918 450 3,368
Workplace experience 12,789 2,593 10,196 505 10,701
Total 138,318 140,679 -2,361 88,573 86,212
In addition to the R86 million which is supported by signed contracts, the Board approved additional funds of R120 million in order to
fund more programmes in the 2010/11 financial year, R30 million has been ring fenced for constituent members to submit proposals
for their special skills development needs. At the time of reporting, procurement processes to commit and enter into contracts with
providers were in place.

21. Commitments and Contingences (continued)
21.2 Administration reserve
2009/10 2008/09
R’000 R’000
Reserve retained to cover future depreciation/amortisation of property,
plant and equipment/intangible assets 2,130 3,089
21.3 Total of future minimum lease payments under

non-cancellable leases:
21.3.1 Operating leases
Buildings
Not later than one year 12 3,868
Later than one year and not later than five years 2,307 1,659
21.3.2 Capitalised finance leases
Office equipment
Not later than one year - 190
Later than one year and not later than five years - -
2,319 5,717
The leases relate to building premises used for office accommodation and office equipment. The lease agreement for office space in
Johannesburg was entered into and became effective 1 August 2005 and will expire 31 July 2010. A lease agreement for office space at
the Polokwane regional office was entered into and became effective 1 November 2005 and has expired. Another lease agreement for
office space at the East London regional office was entered into and became effective 1 November 2007 and has expired. Provision
was made for an option to renew the leases on expiry. Office equipment in the current year comprises a lease for seven photocopiers
which was entered into and became effective 1 February 2007 and has expired. Future commitments are determined by obligations
contained in the lease agreements.
21.4 Contingent liability
During the year under review, one of the ETDP SETA service providers served the organisation with a summons in which the plaintiff
indicated that it had provided services in the 2006/07 financial year and their claim of R324,300 is being disputed and the matter is
with the ETDP SETA attorneys. The matter had not been resolved at the reporting date.

22. Risk Management
22.1 General
In the course of its operations, the ETDP SETA is exposed to the interest rate, liquidity risk and market risk. In order to monitor these
risks, the ETDP SETA has developed a risk management strategy in terms of TR28.1. Below is the ETDP SETA’s risk management
process.
22.2 Operational risk
Operational risk is the risk of loss arising from system failure, human error or external events. When controls fail to perform,
operational risk can cause damage to reputation, have legal or regulatory implications or can lead to financial loss. The ETDP SETA
cannot expect to eliminate all operational risks, but by initiating a rigorous control framework and by monitoring and responding to
potential risk, the ETDP SETA is able to manage risk. Controls include effective segregation, monitoring, authorisation, reconciliation,
staff education and risk assessment processes.
22.3 Liquidity risk
This risk is managed via proper working capital management, expenditure management and actual versus forecast cash flows and the
cash management policy. Adequate reserves in support of existing commitments and liquid resources are maintained. The table below
provides an analysis of ETDP SETA’s financial liabilities into their maturity groupings as per the Statement of Financial Position. These
amounts are not discounted as they are as per contracts:
Later than Later than

one month Later than one year
Not later but not later three months but not later
than than three but not later than five
one month months than one year years
R’000 R’000 R’000 R’000
March 2010
Finance lease obligations - - - -
Trade and other payables 18,738 - - -
March 2009
Finance lease obligations 417 77 150 190
Trade and other payables 18,186 - - -

22. Risk Management (continued)
22.4 Interest risk
ETDP SETA manages its interest risk by spreading its funds over different financial institutions and using various short-term investments.
A cash management system is used for monitoring bank balances. The sensitivity of surplus funds to interest rates is dependent on the
prime rate variations. At the reporting date, the prime rate was 10% (2009: 13%)
Non-interest
Floating rate bearing
Effective
interest
Amount rate p.a. Amount Total
R’000 % R’000 R’000
Financial assets
Cash 265,392 7.12 1 265,393
Accounts receivable 700 186 886
Total financial assets 266,092 187 266,279
Financial liabilities
Accounts payable (11,636) (14,930) (26,566)
Total financial liabilities (11,636) (14,930) (26,566)

Financial assets
Cash 295,221 9 1 295,222
Accounts receivable 527 154 681
Total financial assets 295,748 155 295,903
Financial liabilities - - -
Accounts payable (17,973) (15,822) (33,795)
Total financial liabilities (17,973) (15,822) (33,795)
22.5 Credit risk
Financial assets which potentially subject the ETDP SETA to the risk of non-performance by counter parties and thereby to
concentration of credit risk consist mainly of cash and cash equivalents and accounts receivable. Except for the global economic
downturn which may impact on the income received from the levy paying organisations, no events occurred during the year that may
impact on the accounts receivable.

The ETDP SETA management limits its treasury counter-party exposure by only dealing with well-established financial institutions
approved by National Treasury through the approval of their investment policy in terms of Treasury Regulation 31.2. The ETDP SETA’s
exposure is continuously monitored by a Finance Committee convened in accordance with the PFMA.
Credit risk with respect to levy paying employers is limited due to the nature of the income received. The ETDP SETA does not have
any material exposure to any individual or counter-party. The ETDP SETA’s concentration of credit risk is limited to the Education,
Training and Development industry in which the ETDP SETA operates. No events occurred in the industry during the financial year
that may have an impact on the accounts receivable that has not been adequately provided for. Accounts receivable are presented net
of allowance for doubtful debt where applicable.
22.6 Market risk
The ETDP SETA is exposed to fluctuations in the employment market; for example sudden increases in unemployment and changes in
the wage rates. No significant events occurred during the year that the ETDP SETA is aware of.
Fair values
The ETDP SETA’s financial instruments consist mainly of cash and cash equivalents, account and other receivables and account
and other payables. No financial instruments were carried at an amount in excess of their fair value. The following methods and
assumptions are used to determine the fair value of each class of financial instrument:
No financial asset or liability was carried at an amount in excess of its fair value and fair values could be reliably measured for all
financial instruments.
23. Related Party Transactions
23.1 Transactions with other SETAs
Inter SETA transactions arise due to the movement of employers from one SETA to another. No other transactions occurred during
the year with other SETAs. All transactions were at arm’s length. The parent entity of all SETAs is the DHET.
2009/10 2008/09
Amount Amount Amount Amount
of the receivable/ of the receivable/
transaction (payable) transaction (payable)
R’000 R’000 R’000 R’000
Received 5 12 11 2
FASSET - - 6 -
CETA - - 5 2
SERVICES SETA 5 - - -
ISETT SETA - 12 - -
Paid (134) - - (32)
SERVICES SETA (32) - - (32)
H&WSETA (8) - - -
AGRISETA (94) - - -
Total (129) 12 11 (30)

23. Related Party Transactions (continued)
23.2 Transactions with other related parties
The ETDP SETA recognises that related party transactions can present potential or actual conflicts of interest; it is therefore the policy
of the ETDP SETA that at the time of evaluating contractual engagements the contracting parties are requested to provide evidence of
company registrations and ownership/directorship. All the stakeholders are also requested to declare their interests prior to the start
of meetings.
2009/10 2008/09
Amount Amount
of the of the
Nature of transaction transaction
Related party relationship Transaction Type R’000 R’000
Payables
HESA Governance Mandatory grants 65 292
NEHAWU Governance Mandatory grants 104
SADTU Governance Mandatory grants 83 1,687
NAPTOSA Governance Mandatory grants 54 38
Thembekile Training Consulting Governance Discretionary grants 1,809 960
Institute for Quality Governance Discretionary grants - 2,001
T Nxesi Summit delegate Expense claim 6 -
Polokwane Municipality Public entity Service provider 15 17
SAQA Public entity Service provider 156 650
SAA Public entity Service provider 7,657 5,065
The Auditor-General Public entity Service provider 1,182 644
Telkom SA Public entity Service provider 1,428 1,085
SABC Public entity Service provider 2 -
24. Prior Period Error

During the financial year, a further validation of creditors’ balances revealed that certain transactions that still appeared as outstanding
were due to duplicate processing and invoices that were never approved for payment. The effect had been to increase liabilities and
expenditure by R1.9 million in the prior years. The adjustment has affected the following balances:
2009/10 2008/09
R’000 R’000
Decrease in creditors - 1,978
Decrease in administration expenses - (1,849)
Increase in reserves - (129)
25. Change in Estimates

In terms of the requirements of IAS 16 the useful lives of assets were reviewed at year end. Where the remaining useful life
expectations of certain assets differed from previous estimates, an adjustment for an over or underestimation was processed in the
asset register.

26. Events After the Reporting Date
National Treasury approved the retention of accumulated surpluses and reserves by the ETDP SETA at the end of the 2009/10
financial year.
27. Fruitless and Wasteful Expenditure

2009/10 2008/09
Incident Decision of Accounting Officer R’000 R’000
Failing to exercise due care and control. Condoned after disciplinary action. - 54
Cancellation of flight bookings of the Condoned after an explanation that led to 35 -

ETDP SETA delegation to the UK in July the cancellation was provided.
2009 from British airways to South African
Airways.
Court order against ETDP SETA to cancel The accounting authority accepted the 5,070 -
contracts awarded and be replaced by court ruling and instructed that the
new contracts in favour of the litigant. The procurement processes must be tightened
order was issued once the ETDP SETA to ensure that the bid evaluation process
had already made training payments and does not have loop holes that can cause
learner allowance payments. similar cases in future.
The compensation commissioner levied The accounting officer raised an objection 12 -

an interest on late payment of Workman’s with the commissioner because the non-
Compensation. payment was due to the commissioner
advising ETDP SETA that their records
were in good order.
28. Comparison of Budgeted Statement of Financial Performance with Actual
2009/10 2009/10 2009/10

Actual Budget Variance
R’000 R’000 R’000
Revenue
Skills Development Levy: income 275,017 249,192 25,825
Investment income 19,994 29,400 (9,406)
Other income 227 - 227
Total revenue 295,238 278,592 16,646
Expenses
Administration expenses (78,152) (92,270) 14,118
Finance charges (86) - (86)
Employer grants (99,675) (77,565) (22,110)
Discretionary grants (140,679) (231,777) 91,098
Total expenses (318,592) (401,612) 83,020
Net surplus/(deficit) for the period (23,354) (123,020) 99,666

28. Comparison of Budgeted Statement of Financial Performance with Actual

(continued)
Actual Budget Variance

2009/10 2009/10 2009/10
R’000 R’000 R’000
Advertising and promotions 2,289 2,973 684
Audit fees 1,714 1,669 (45)
Bank charges 218 180 (38)
Cell phone allowance 319 426 107
Consulting fees 1,072 1,163 91
Consumables 118 150 32
Depreciation/amortisation 2,348 3,479 1,131
Loss on disposals 21 - (21)
Hire of equipment 236 560 324
Insurance 302 252 (50)
IT maintenance and licences 925 357 (568)
IT Software and licenses 424 239 (185)
Material development 30 1,500 1,470
Motor vehicle expenses 31 204 173
Office expenses 28 403 375
Postage and printing 1,189 1,038 (151)
Recruitment expenses 8 330 322
Relocation-staff 61 240 179
Repairs and maintenance 444 274 (170)
Refreshments and catering 1,546 941 (605)
Rent 4,705 5,618 913
Security and cleaning 757 496 (261)
Salaries and benefits 36,923 38,202 1,279
Seminars and conferences 3,197 6,340 3,143
Subscriptions 21 12 (9)
Staff training 922 1,389 467
Stationery 338 395 57
Telephone and fax 1,351 1,440 89
Travel and accommodation 13,158 18,325 5,167
Outreach activities 3,457 3,675 218
78,152 92,270 14,118

Explanation for Material Variances between Actual Results and Approved Budget
Levies
Actual skills development levy income is R21.9 million more than the budget due to salary increases within the levy paying member
organisations that may have been higher than the ETDP SETA had projected. Based on the same explanation, the levies from the
departments of education exceeded the budget by R4.2 million.
Investment income
Interest earned is at 60% of what was received in 2009 and 32% below the budget. This is mainly due to the drop in the interest rate
paid by the banks in the 2009/10 financial year.
Other income
This represents items that were not budgeted for, namely: a recovery of R44,000 from a provider, mandatory grants receipt of R128,000
by ETDP SETA and insurance claims of R55,000.
Administration expenses
Administration expenses that contributed to the actual expenses being lower than the budget include:
• Personnel expenses – due to the actual staff complement being around 89 compared to the approved level of 104;
• The actual spending for seminars and conferences and travel and accommodation – because the activities did not attract the
number of participants who were originally budgeted for;
• Depreciation expense – due to the adjustments to expense as a result of the revision to the useful lives of assets; and
• Spending against the budget for material development – due to the inability to secure the provider.
Mandatory grants
The payments are 123% of 2009 and 28% above the budgeted figure due to an improvement in the number of organisations that claim
grants
Discretionary grants
Though the actual payment is 116% of that which was paid in 2009, it is 39% below the budget figure because most items in the budget
represent new projects, the payments of which will fall due later when the service delivery requirements have been met.
29. World Cup Expenditure

No World Cup expenses of any nature whatsoever were incurred during the year under review or after the reporting date.

Appendix 1
ETDP SETA Governance structures and committee members
Table 1:
Old ETDP SETA BOARD – Until October 2009
No. Name & Surname Capacity Constituency Race Gender Date of Term Date of expiry Meetings
appointment served of term attended
out of 4
1. Tholsia Naicker (Dr) Chairperson APPETD Indian Female July 2006 1 October (4)
2009
2. Trudy Guma Co- NEHAWU Black Female May 2006 1 October (4)
Chairperson 2009
3. Simone Geyer Co- DBE Coloured Female March 2006 1 October (4)
Chairperson 2009
4. Salome Sithole Co- SADTU Black Female August 2006 1 October (2)
Chairperson 2009
5. Joe Modise (Prof) Member HESA Black Male February 2 October (3)
2003 2009
6. Matata Mokoele Member HESA Black Male February 1 October (1)
(Prof) 2007 2009
7. Charles Gilbert Member HESA White Male May 2008 1 October (3)
2009
8. Thobile Ntola Member SADTU Black Male October 1 October (3)
2007 2009
9. Ezra Ramasehla Member NAPTOSA Black Male May 2008 1 October (3)
2009
10. Mxolisi Dimaza Member SADTU Black Male May 2008 1 October (3)
2009
11. Crystal Dicks Member COSATU Coloured Female February 1 October -
Alfred Mafuleka Alternate Black Male 2008 2009 (1)
12. Renny Somnath Member SADTU Indian Male August 2008 1 October (1)
2009
13. Kinny Labuschagne Member SAOU White Female August 2008 1 October -
2009
14. Jeanette Moema Member DBE GP Black Female April 2007 1 October (1)
Rendani Ramagwa Alternate Black Male 1 2009 (1)
15. Ezzy Lukhaiman Member DBE NW Black Female August 2008 1 October (1)
Simon John Alternate Indian Male 2009 (1)
16. Sipho Sukati Member DBE MP Black Male August 2007 1 October (2)
2009
17. Vishnu Abhilak Member DBE FS Indian Male May 2007 1 October (1)
2009
18. Zolisa Loni Member DBE EC Black Female April 20008 1 October (1)
2009
19. Gugulethu Mbele Member NATU Black Female February 2 October (3)
2003 2009
20. Thami Mbalo Member NEHAWU Black Male May 2008 1 October (3)
2009
21. Shireen Pardesi Member DBE PLK Indian Female July 2007 1 October -
2009
22. Mark Henning Member NAISA White Male June 2007 1 October (3)
2009
23. Archie Mokonane Member ALN Black Male October 1 October (3)
2007 2009

out of 4
24. Edgar Kirsten Member DBE WC White Male August 2005 2 October (2)
2009
25. Graham Myers Member NUTESAS White Male September 1 October (3)
2007 2009
26. Mashudu Manyaga Member NAPTOSA Black Male November 1 October (3)
2007 2009
27. Zolile Albani Member DoE NC Black Male August 2007 1 October (2)
2009
28. Ella Mokgalane Member SACE Black Female July 2008 1 October (2)
Sekgametse Alternate Black Female 2009 (2)
Hlatswayo
29. Karen Hindricks Member SABPP White Female August 2007 1 October (2)
2009
30. Ismaiyili Issacs Member SACECD Coloured Male August 2006 1 October (2)
2009
31. Susan Malima Member Budget Black Female May 2004 1 October (3)
Chamber 2009
Chairperson
32. Ashik Hansraj Observer Levy Coloured Male February 1 October -
Chamber 2006 2009
Chairperson
33. Jake Dikobo Member PEU Black Male April 2005 2 October (3)
2009
34. Ornica Mukhavhuli Member APPEDT Black Female January 2008 1 October (3)
2009
35. Samson Makhado Member NAISA Black Male May 2007 1 October -
Daniel Govender Member Indian Male August 2009 2009 (1)
36. Raisebe Tshweu Member SANGOCO Black Female March 2009 1 October (4)
2009
37. Lulama Mbobo Member DBE KZN Black Female August 2007 1 October (2)
Mandla Msweli Alternate Black Male 2009 (2)
38. Solwako Mahlangu Member SADTU Black Male August 2008 1 October (3)
2009
39. Patrick Mutubatse Member NEHAWU Black Male August 2009 1 October (1)
2009
40. Sello Tshabalala Member SADTU Black Male August 2008 1 October -
2009
41. Ismaiyili Issacs Member SACED Coloured Male February 1 October -
2006 2009
42. Sylvia Nkanyuza Member NUTESA Black Female June 2006 1 October -
Litha Ludidi Vincent Alternate Black Male 2009 (1)
Mtyende Alternate Black Male (1)
43. Nombulelo Nxesi (CEO - Ex ETDP SETA Black Female August 2004 2 March 2011 -
Officio
Member
44. Burton Malgas (Dr) COO - Ex ETDP SETA Coloured Male October 1 March 2011 -
Officio 2008
Member
45. David Molapo CFO - Ex ETDP SETA Black Male July 2006 1 March 2011 -
Officio
Member

Appendix 1: ETDP SETA Governance structures and committee members (continued)
Table 2:
Current ETDP SETA Board – Until October 2009
out of 4
1. George Mudumela Chairperson SADTU Black Male August 2008 1 March 2011 (1)
2. Simone Geyer Co- DBE Coloured Female October 1 March 2011 (1)
Chairperson 2009
3. Trudy Guma Co- NEHAWU Black Female October 1 March 2011 (1)
Chairperson 2009
4. Salome Sithole Member SADTU Black Female October 1 March 2011 (1)
2009
5. Ornica Mukhavhuli Member APPETD Black Female October 1 March 2011 (1)
2009
6. Raisebe Tshweu Member SANGOCO Black Female October 1 March 2011 (1)
2009
7. Solwako Mahlangu Member SADTU Black Male October 1 March 2011 (1)
2009
8. Sello Tshabalala Member SADTU Black Male October 1 March 2011 -
2009
9. Lulama Mbobo Member DBE KZN Black Female October 1 March 2011 (1)
2009
10. Abe Seakamela Member DBE NW Black Male October 1 March 2011 (1)
2009
11. Patric Motubatse Member NEHAWU Black Male October 1 March 2011 (1)
2009
12. Joe Mpisi Member NEHAWU Black Male October 1 March 2011 (1)
2009
13. Louw Botha (Dr) Member HESA White Male October 1 March 2011 (1)
2009
14. Sekete Moshoeshoe Member COSATU Black Male October 1 March 2011 (1)
Crystal Dicks Alfred Coloured Female 2009
Mafuleka (alt) Black Male
15. Jonovan Rustin Member SADTU Coloured Male October 1 March 2011 -
2009
16. Charlie Molepo Member LIASA Black Male October 1 March 2011 (1)
2009
17. Nirmala Gopal Member NTEU Indian Female October 1 March 2011 (1)
2009
18. Nombulelo Nxesi (CEO - Ex ETDP SETA Black Female August 2004 2 March 2011 -
Officio
Member
19. Burton Malgas (Dr) COO - Ex ETDP SETA Coloured Male October 1 March 2011 -
Officio 2008
Member
20. David Molapo CFO - Ex ETDP SETA Black Male July 2006 1 March 2011 -
Officio
Member

Table 3:
The Old Executive Committee of the ETDP SETA - Until October 2009
out of 4
1. Tholsia Naicker (Dr) Chairperson APPETD Indian Female July 2006 1 March 2010 (6)
2. Trudy Guma Co- NEHAWU Black Female May 2006 1 March 2010 (6)
Chairperson
3. Simone Geyer Co- DBE Indian Female March 2006 1 March 2010 (6)
Chairperson National
4. Salome Sithole Co- SADTU Black Female August 2006 1 March 2010 (5)
Chairperson
5. Ezra Ramasehla Member NAPTOSA Black Male February 1 March 2010 (2)
2007
6. Mark Henning Member NAISA White Male March 2003 1 March 2010 (4)
7. Shireen Pardesi Member DBE - Indian Female May 2007 1 March 2010 (5)
Limpopo
8. Vacant Member Labour - - - - - -
9. Nombulelo Nxesi (CEO - Ex ETDP SETA Black Female August 2004 2 March 2011 (5)
Officio
Member
10. Burton Malgas (Dr) COO - Ex ETDP SETA Coloured Male October 1 March 2011 (5)
Officio 2008
Member
11. David Molapo CFO - Ex ETDP SETA Black Male July 2006 1 March 2011 (5)
Officio
Member
Table 4:
The Budget Chamber of the ETDP SETA
out of 4
1. George Mudumela Chairperson SADTU Black Male August 2008 1 March 2011 (4)
-Board and
EXCO
2. Tseliso Ledimo Member SADTU Black Male August 2008 1 March 2011 (3)
3. Mzoleli Mrara* Member SADTU Black Male August 2008 1 March 2011 (1)
4. Jonavon Rustin Member SADTU Coloured Male August 2008 1 March 2011 (3)
5. George Masegela Member SADTU Black Male August 2008 1 March 2011 (4)
6. Lubabalo Ngxola Member SADTU Black Male August 2008 1 March 2011 (4)
7. Paulus Macheli Member SADTU Black Male August 2008 1 March 2011 (4)
8. Brian Setswambung Member SADTU Black Male August 2008 1 March 2011 (2)
9. Kinny Labuschagne Member SAOU White Female April 2009 1 March 2011 (3)
10. Magdeline Makgoba Member PEU Black Female February 1 March 2011 (3)
2006
11. Gopaul Premchund Member NAPTOSA Indian Male April 2007 1 March 2011 (3)
12. Thamsanqa Mbalo Member NEHAWU Black Male April 2007 1 March 2011 (4)

Table4: The Budget Chamber of the ETDP SETA (continued)

out of 4
13. Maurice Mopeli Member NEHAWU Black Male November 1 March 2011 (3)
2007
14. Kgakgamatso Member NEHAWU Black Female November 1 March 2011 (4)
Motebe 2007
15. Robert Gumede Member NEHAWU Black Male November 1 March 2011 (3)
2007
16. Jolenah Marosa Member NEHAWU Black Female November 1 March 2011 (3)
2007
17. Mthunzi Mbewana Member NATU Black Male February 1 March 2011 (4)
2007
18. Sipho Sukati Member Mpumalanga Black Male February 1 March 2011 (3)
DoE 2006
19. Ntombi Mxenge Member Mpumalanga Black Female February 1 March 2011 (3)
DoE 2006
20. Kedidimetse Member Free State Black Female February 1 March 2011 (3)
Motshumi DoE 2006
21. Marinda Snyders Member Free State White Female July 2006 1 March 2011 (4)
DoE
22. Gavin de bruyn Member Western Coloured Male February 1 March 2011 (4)
Cape DoE 2006
23. Alfred Shasha Member Western Black Male February 1 March 2011 (3)
cape DoE 2008
24. Nomonde Mpepo Member Eastern Black Female July 2008 1 March 2011 (2)
Cape DoE
25. Zolisa Loni Member Eastern Black Female October 1 March 2011 (3)
Cape DoE 2008
26. Peter Mothapo* Member Gauteng Black Male July 2008 1 March 2011 -
DoE
27. Mr Lehlohonolo Member Gauteng Black Male July 2009 1 March 2011 1 of 2
Hlalele DoE
29. Jeanette Moema* Member Gauteng Black Female November 1 March 2011 (1)
DoE 2007
30. Rendani Ramagwa Member Gauteng Black Male July 2009 1 March 2011 (1)
DoE
31. Thula Nkomo Member National Black Male February 1 March 2011 (3)
DoE 2006
32. Simone Geyer Member National Coloured Female April 2007 1 March 2011 (1)
DoE
33. Vincent Maphumulo Member Kwa-Zulu Black Male February 1 March 2011 (4)
Natal DoE 2009
34. Nozipho Hlongwa Member Kwa-Zulu Black Female November 1 March 2011 (4)
Natal DoE 2007
35. Shireen Pardesi Member Limpopo Indian Female May 2008 1 March 2011 (1)
DoE
36. Sussan Malima Member Limpopo Black Female February 1 March 2011 (3)
DoE 2006
37. Simon John Member North West Indian Female February 1 March 2011 (1)
DoE 2008
38. Arthur Keswa* Member Northern Black Male November 1 March 2011 -
Cape DoE 2007

out of 4
39. Ms Syeeda Abass* Member Northern Coloured Female October 1 March 2011 (2)
Cape DoE 2009
40. Cynthia Modise Member Northern Black Female April 2008 1 March 2011 (2)
Cape DoE
- Mr Mzoleli Mrara resigned April 2009 – the vacancy for SADTU Eastern Cape representative was not filled during the reporting period;
- Mr Peter Mothapo was replaced by Mr Lehlohonolo Hlalele after the July 2009 Meeting;
- Mr Jeanette Moema was replaced by Mr Rendani Ramagwa with effect from July 2009;
- Mr Arthur Keswa resigned and was replaced by Ms Syeeda Abass with effect from the October 2009;
- The SADTU KZN did not have a representative during the reporting period;
- NAPTOSA did not have a representative during the reporting period;
- One NEHAWU seat was vacant during the reporting period.
Table 5:
The Levy Chamber of the ETDP SETA
out of 4
1. Ashik Hansraj Chairperson APPETD Indian Male Feb 2006 1 January 2010 (3)
2. Mark Henning Member NAISA White Male February 2 January 2010 (4)
2003
3. Rashid Chopdat Member NAISA Indian Male April 2008 1 January 2010 (4)
4. Tholsia Naicker (Dr) Member APPETD Indian Female July 2006 1 January 2010 (3)
5. Paul Beard (Prof) Member APPETD White Male April 2008 1 January 2010 (4)
6. Louw Botha (Dr) Member HESA White Male July 2008 1 January 2010 (4)
7. Raisibe Tshweu Member SANGOCO Black Female April 2009 1 January 2010 (4)
8. David Shasha Member SANGOCO Black Male April 2009 1 January 2010 (4)
9. Achmat Noor Member Research Indian Male February 1 January 2010 (3)
Institutions 2006
10. Moses Msotywa Member ALN Black Male February 1 January 2010 -
2006
11. Silas Mpungose Member NEHAWU Black Male November 1 January 2010 (13)
2007
12. Bradley Skei* Member NEHAWU Coloured Male February 1 January 2010 1 of 2
2006
13. Njabulo Kuzwayo Member SADTU Black Male August 2008 1 January 2010 (4)
14. Thobile Ntola Member SADTU Black Male August 2008 1 January 2010 -
15. John Maluleke Member SADTU Black Male August 2008 1 January 2010 -
16. Sipho Nkosi* Member SADTU Black Male August 2008 1 January 2010 (1)
17. Anthony Akal (Dr) Member NAPTOSA White Male April 2007 1 January 2010 (3)
18. Nirmala Gopal (Dr) Member NTESU Indian Male October 1 January 2010 (4)
2008
19. Robin Minne Member NUTESA White Male February 1 January 2010 (4)
2006
- FEDUSA did not have a representative during the reporting period as they sought transfer to the Services SETA;
- Mr Bradley Skei resigned after the July 2009 Meeting and the vacancy was not filled; and
- Mr Sipho Nkosi resigned after the April 2009 meeting and the vacancy was not filled.

Table 6:
The Finance Committee of the ETDP SETA
out of 4
1. Sipho Sukati Chairperson Mpumalanga Black Male January 1 March 2011 (6)
DoE 2007
2. Jake Dikobo Member PEU Black Male April 2007 1 March 2010 (5)
3. John Scott Member Independent White Male July 2006 1 March 2011 (6)
Member
4. Nick Nicholls Member Independent White Male July 2008 1 March 2011 (6)
Member
5. Graham Myers Member NUTESA White Male October 1 March 2011 (5)
2008
Officio
Member
7. Nombulelo Nxesi CEO - Ex ETDP SETA Black Female August 2004 1 March 2011 (3)
Officio
Member
Table 7:
The Audit Committee of the ETDP SETA
out of 6
1. Vusi Mokwena Chairperson Independent Black Male February 1 March 2011 (6)
Member 2007
2. Dawood Coovadia Member Independent Indian Male March 2008 1 March 2011 (6)
Member
3. Rooksana Moola Member Independent Indian Female November 1 March 2011 (4)
Member 2010
4. Ntombi Mxenge Member Mpumalanga Black Female May 2008 1 March 2011 (3)
DoE
5. Ezra Ramasehla Member NAPTOSA Black Male March 2008 1 March 2011 (5)
6. Burton Malgas (Dr) COO - Ex ETDP SETA Coloured Male October 1 March 2011 (4)
Officio 2008
Member
Officio
Member
8. Nombulelo Nxesi CEO - Ex ETDP SETA Black Female August 2004 1 March 2011 (5)
Officio
Member

Table 8:
The Remuneration Committee of the ETDP SETA
out of 6
1. Paseka Njobe Chairperson National Black Male 2005 1 March 2011 (6)
DoE (SADTU)
2008 (DOE)
2. Louw Botha Member HESA White Male August 2008 1 March 2011 (6)
3. Sipho Sukati Member Mpumalanga Black Male April 2007 1 March 2011 (4)
DoE
4. Simoné Geyer Member National Coloured Female April 2006 1 March 2011 -
DoE
Table 9:
The Human Resources Committee of the ETDP SETA
out of 4
1. Paseka Njobe Chairperson National Black Male March 2005 1 March 2011 (3)
DoE (SADTU)
July 2008
(DOE)
2. Guy Blackbeard Member APPETD White Male March 2008 1 March 2011 (0)
(resigned in
August 2008)
Louw Botha (Dr) Member HESA White Male August 2008 March 2011 (4)
(replaced
Guy
Blackbeard)
3. Nomusa Cindi Member NATU Black Female March 2008 1 March 2011 (3)
(resigned in
August 2008)
Thami Mbalo Member NEHAWU Black Male August 2008 March 2011 (3)
(replaced
Nomusa
Cindi
4. Sylvia Nkanyuza Member NTESU Black Female August 2007 1 March 2010 (2)
5. Micheal Watkins HR Manager ETDP SETA White Male June 2006 1 March 2011 (4)
- Ex Officio
Member

Table 10:
The Education, Training and Quality Assurance Permanent Committee of the ETDP SETA
out of 5
1. Mandla Msweli Chairperson Kwa-Zulu Black Male June2006 1 March 2011 (5)
Natal DoE
2. George Mudumela Member SADTU Black Male November 1 March 2011 (5)
2008
3. Litha Ludidi Member NTESU Black Male November 1 March 2011 (3)
2008
4. Paul Beard Member APPETD White Male June 2006 1 March 2011 (4)
5. Tony Khatle Member APPETD Black Male June2006 1 March 2011 (5)
6. Basil Manuel Member NAPTOSA White Male November 1 March 2011 (3)
2008
7. Rama Kistiah Acting ETDP SETA Indian Male June 2009 1 March 2011 (5)
ETDQA
Manager -
Ex Officio
Member
8. Thabani Gula Assistant ETDP SETA Black Male June 2006 1 March 2011 (4)
ETDQA
Manager -
Ex Officio
Member

Abbreviations and Acronyms
ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome
ALN Adult Learning Network
APPETD Association of Private Providers of Education Training and Development
ATR Annual Training Report
BEE Black Economic Empowerment
CBO Community Based Organisation
CEO Chief Executive Officer
CFO Chief Financial Officer
COSATU Congress of South African Trade Unions
DEV PRAC Development Practice
DoE Department of Education
DHET Department of Higher Education and Training
DoL Department of Labour
ECD Early Childhood Development
ELRC Education Labour Relations Council
ETD Education, Training and Development
ETDP Education, Training and Development Practices
ETDQA Education, Training and Development Quality Assurance
ETQA Education and Training Quality Assurer
EXCO Executive Committee
FET Further Education and Training
FETC Further Education and Training Certificate
HEI Higher Education Institution
HET Higher Education and Training
HESA Higher Education South Africa
HIV Human Immunodeficiency Virus
HR Human Resources
IT Information Technology
ISOE Institutes of Sectoral or Occupational Excellence
KZN KwaZulu-Natal
LIBSA Limpopo Business Support Agency
LMA Labour Market Analysis
LPE Learning Programme Evaluation
MERSETA Manufacturing, Engineering and Related Services SETA
MoU Memorandum of Understanding
NAISA National Alliance of Independent Schools Associations
NAPTOSA National Professional Teachers Organisation of South Africa
NATU National Teachers Union
NEHAWU National Education Health and Allied Workers Union
NGO Non-governmental Organisation
NLPE Non-levy Paying Enterprise
NQF National Qualifications Framework
NSA National Skills Authority
NSDS II National Skills Development Strategy 2005-2010
NTESU National Tertiary Educators Staff Union
NUTESA National Union of Tertiary Employees of South Africa

NVC New Venture Creation
ODETD Occupationally Directed Education and Training Development
PEU Professional Educators Union
PFMA Public Finance Management Act
PGCE Post-Graduate Certificate in Education
PMDS Performance Management and Development System
SABPP South African Board of Personnel Practitioners
SACE South African Council for Educators
SACECD South African Congress for Early Childhood Development
SADTU South African Democratic Teachers Union
SANGOCO South African National NGO Coalition
SAOU Suid Afrikaanse Onderwyser Unie
SAQA South African Qualifications Authority
SARS South African Revenue Services
SDF Skills Development Facilitator
SDLA Skills Development Levies Act
SETA Sector Education and Training Authority
SLA Service Level Agreement
SSP Sector Skills Plan
TVET Technical Vocational Education and Training
WSP Workplace Skills Plan

Head Office
3 Annet Road, Curatio Building, Auckland Park, Johannesburg
Private Bag X105, Melville, 2109
Tel: (011) 628 5000, Fax: (011) 482 6419

Toll free number: 0800 ETDP 73
E-mail: info@etdpseta.org.za
Website: www.etdpseta.org.za
Anti Corruption Hotline Number: 0800 204 937

E-mail: etdpseta@tip-offs.com
RP:101/2010
ISBN: 978-0-0621-39429-0
Limpopo Provincial Office KwaZulu-Natal Provincial Office Eastern Cape Provincial Office
106 Hans van Rensburg Street, Empire 12th Floor Durban Bay House, 77 Oxford Street, 4th Floor Standard
Place Building, Polokwane 333 Smith Street, Durban Bank Building, East London
PO Box 6009, Polokwane 0750 Private Bag X54377, Durban 4000 Private Bag X9070, East London 5200
Tel: (015) 297 8287 Tel: (031) 304 5930 Tel: (043) 722 0231/2/4
Fax (015) 297 8288 Fax: (031) 301 9313 Fax: (043) 722 0297

Etdp Seta Annual Report 2009-2010

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Etdp Seta Annual Report 2009-2010

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Education, Training and

The SETA is mandated to promote and facilitate the delivery of

Vision, Mission and Values 2

Chief Executive Officer’s Overview 4

ETDP SETA Performance against NSDS Targets and Achievements 6

Learner Equity Targets Report 10

Skills Development Programmes Implemented 11

Sector Skills Planning and Research 17

Quality Assurance and Provider Support 21

Audit Committee Report 32

Report of the Auditor-General to Parliament 34

Annual Financial Statements for the Period Ended 31 March 2010 36

Report of the Accounting Authority 37

Abbreviations and Acronyms 81

ETDP●SETA Annual Report 2009/2010 1

2 ETDP●SETA Annual Report 2009/2010

“The ETDP SETA welcomes

The ETDP SETA welcomes the additional one-year extension

Given our commitment to continuous improvement, the above

ETDP●SETA Annual Report 2009/2010 3

“The targets for registration into

4 ETDP●SETA Annual Report 2009/2010

ETDP●SETA Annual Report 2009/2010 5

Table 2: Achievements on NSDS II Objective 2 and Targets for 2009/10

6 ETDP●SETA Annual Report 2009/2010

Table 3: Achievements on NSDS II Objective 3 and Targets for 2009/10

ETDP●SETA Annual Report 2009/2010 7

8 ETDP●SETA Annual Report 2009/2010

Table 5: Achievements on NSDS II Objective 5 and Targets for 2009/10

ETDP●SETA Annual Report 2009/2010 9

The SETA has achieved more than it had planned because of

10 ETDP●SETA Annual Report 2009/2010

ETDP●SETA Annual Report 2009/2010 11

Skills programmes The Skills Development Facilitator (SDF) programme is aimed at

12 ETDP●SETA Annual Report 2009/2010

The ETDP SETA internship programme is a graduate work

ETDP●SETA Annual Report 2009/2010 13

Table 6: Learners Entering Programmes (employed and unemployed)

14 ETDP●SETA Annual Report 2009/2010

Table 7: Learners Completing Programmes (employed and unemployed)

ETDP●SETA Annual Report 2009/2010 15

Increasing access to further and higher education

16 ETDP●SETA Annual Report 2009/2010

ETDP●SETA Annual Report 2009/2010 17

• Construction of a dashboard of available labour market Workplace Skills Planning (WSP)

The intervention was put in place to ensure that SSP development

Figure 1: Submissions of WSPs by constituency

WSP/ATR Submission by Constituency

0 50 100 150 200 250 300 350

18 ETDP●SETA Annual Report 2009/2010

Figure 2: Submissions of WSPs by levy-paying organisations per province

WSP/ATR Submission by Province

Figure 3: Submission of WSPs by organisational size

WSP/ATR Submission by Organisational Size

ETDP●SETA Annual Report 2009/2010 19

Identification of Scarce and Critical Skills

In this context, scarce skills refer to occupations in which there

The national analysis of the demand and supply in the 2009-2010

The communication of the scarce and critical skills was done

In addition to the dissemination of information on scarce

20 ETDP●SETA Annual Report 2009/2010

ETDP●SETA Annual Report 2009/2010 21

Institutes of Sectoral or Occupational Excellence Challenges